The Department of Telecommunications is formulating an exit policy that will enable loss-making telecom companies to transfer their businesses to an existing player without procedural impediments. DoT has constituted a special committee to identify such issues and concerns of the telecom industry and to propose possible solutions.

Under the new policy, DoT is planning to allow a player to transfer its business to a more-established player, including all approvals and permissions granted within the licences. The committee has also suggested on reducing the clearances as it requires several months and leads to disruption of services if there is a transfer of business. With transfer of business, permission to exit may be transferred within the licence period. At present, companies can exit the sector by way of surrendering licence and spectrum.

The committee has also suggested that internal restructuring of telecom companies would be reconsidered, as in case of merger and acquisitions. On liberalisation of 3G and broadband wireless access (BWA) spectrum, the committee has suggested that recommendations of TRAI should be taken into account after assessing its possible implications. The committee has noted that segregation of revenue from BWA services would require greater technical capacities. It has requested DoT to further provide directions on the issue. The other issues being assessed by the committee includes changing penalty structure, and the policy on unconditional undertaking or clearing dues.