The Telecom Commission has asked the Department of Telecommunications (DoT) to prepare an exit policy for operators.

It is believed that the new policy would examine all loopholes, even labour laws, if applicable. It may also permit operators to sell out or surrender their licences.

Further, substantial amounts of spectrum may be given back to DoT, in case the exit policy is framed. The allocation of 121 new licences by A. Raja, former Minister of Telecommunications and IT in 2008 accounts for a cumulative 532.4 MHz of spectrum. For every operator that exits a pan-India licence, the government stands to receive roughly 96.8 MHz of spectrum.

Following the Telecom Commission?s decision, the Telecom Regulatory Authority of India (TRAI) will be required to give its recommendations for an exit policy under Section 11(a) (ii) of the TRAI Act. TRAI will then launch a consultation process, based on which it will make recommendations on this issue. The exit policy is expected to be introduced close to the 2012-2013 Union Budget.