21 November 2002 – According to Asia Pulse, a number of mobile operators have contacted the Prime Minister over concerns with developments in the mobile telecommunications sector.

In separate letters to Prime Minister Atal Bihari Vajpayee, four mobile operators: Escorts, First Pacific Company, Hutchison Telecom and SingTel have raised concerns over issues such as the introduction of an unlimited number of mobile operators, interconnection and pricing policies by incumbents, and have asked for a stable policy environment and a level playing field.

"The current new entrants in India have made substantial investments in telecom infrastructure. However, should unlimited players be allowed there would be little incentive to existing operators to make further long-term investments. Furthermore, it may invite short term players to exploit the industry and consumers for quick gains," Singtel Chief Operating Officer, Lim Toon, said in a letter.

Regarding regulatory issues, Singtel acknowledged that frequent regulatory changes were necessary to meet the requirements of the rapidly growing telecom sector, but it was necessary to ensure that regulatory changes be supported by a transparent regulatory process and provide a stable business environment for existing operators.

In separate letters to the Prime Minister, Escorts and First Pacific stated that the mobile sector was generating large losses and there were serious concerns with issues such as interconnection, discriminatory procedures when determining tariffs and predatory pricing by incumbents.

"Overall, there is a lot of overlap between regulatory, policy and legislative functions, which is leading to confusion and nervousness. Frequently and without participation, decisions are announced which take the form of policy and tend to supercede due process and the laid down legislative powers and procedures," Escorts said.

"We have stated earlier that as a foreign investor what we look for is stable policy environment. We have always welcomed competition but the playing field must be level. The continual changing of the rules throughout that game makes long term investors very nervous," Hutchison said in a letter sent to Vajpayee in September.

"We are aware of the Government reported statements, in respect of further issue of mobile licenses, interconnection issues and incumbent's pricing policies, which seem to amount to policy statements in conflict with NTP 99 and ignoring the functions of TRAI," it said.

Pointing out that NTP 99 was a result of a lengthy consultation process, Hutchison said, "to see such a policy overturned by ad hoc statements without opportunity for the industry to be heard is of a great concern."