Positive direction, little detail

The draft National Telecom Policy (NTP), though positive on intent, has left many questions unanswered, especially those concerning the spectrum issue. The key positive takeaways from the policy are the one-nation-one-licence framework and the full mobile number portability. While the first means customers wouldn’t have to pay roaming charges and calls across the country would be treated as local, the second — in the absence of ‘circles’ — will help customers retain their numbers irrespective of where they intend to relocate within the country. The fallout of a single-licence policy is negative for telecom companies, who could lose out on up to Rs 2,000 crore in revenue, unless they raise tariffs or volumes rise to balance out revenue loss.

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