DoT is planning to reduce the net worth requirement for NLD operators from Rs 25 billion to Rs 6.25 billion, under new licence conditions. Also, the rollout obligations under the new licences may be removed. This is expected to put existing NLD service providers ?? Bharat Sanchar Nigam Limited (BSNL), Reliance Infocomm, Bharti Tele Ventures Limited (BTVL) and Videsh Sanchar Nigam Limited (VSNL) ?? at a disadvantage as they have already made huge investments in paying high licence fees and meeting rollout obligations as per the earlier licence conditions. Most of them have not yet established networks in non-lucrative areas. With DoT now planning to remove rollout obligations, the existing operators will stop setting up networks in non-lucrative areas, while the new entrants will concentrate on commercially lucrative urban areas.
