Saturday, May 10, 2014

Can Mr Anil ambani file a writ application on behalf of reliance communication limited against any decisions of telecom regulatory authority affecting the business interest of the company?

Can Mr Anil ambani file a writ application on behalf of reliance communication limited against any decisions of telecom regulatory authority affecting the business interest of the company?
The Indian government has been active in its regulation of the Indian telecommunications industry and recent news reports have indicated that TRAI may implement new regulatory measures with respect to infrastructure sharing among wireless service providers.It has been suggested that TRAI may make sharing of passive infrastructure such as buildings and telecommunication towers by wireless service providers among themselves mandatory, provided that appropriate commercial compensation is paid to the owners of such infrastructure.

Further, Indian telecommunications companies are currently permitted to share only passive infrastructure such as telecommunication towers, repeaters, shelters and generators. TRAI has recently issued statements suggesting that it may consider amending license conditions of service providers to allow them to share active infrastructure such as optic and feeder fiber cables, radio links, network elements, backhaul, antennae and transmission equipment.

The implementation of any such regulations could significantly affect Reliance Communications business and they are unable to predict the effect that these or any other relevant regulatory actions would have on Reliance Communications business. They could, however, incentivize operators not to use the systems of third party passive infrastructure operators such as themselves or otherwise disadvantage Reliance Communications business.While beneficial to Reliance Communications business in certain respects due to its promotion of passive infrastructure sharing, limits the overall development of telecommunication towers and related assets within areas that are subject to the scheme. This could limit Reliance Communications opportunities to expand their business and could require RCOM to pursue their respective proposed network expansions principally through reliance on other operators' or companies' networks, rather than by commissioning our Company to develop new sites, which would adversely affect their growth prospects.The implementation of any such measures could also result in increased competition in this sector. For example, if infrastructure sharing is made mandatory, companies such as BSNL, the wireless service provider with the widest coverage in India, would be required to share infrastructure with other wireless service providers. Companies such as BSNL have a competitive advantage due to extensive coverage and reach of their network infrastructure. Such measures could adversely affect our business, prospects, results of operations and financial condition.

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