The ripple effects of the cancellation of 2G licences could spread throughout the economy
The Court Strikes Back
The Supreme Court's cancellation of 122 licenses have evoked mixed responses. While some share a "feeling of Schadenfreude," the others see it as an ominous sign for the already-teetering investment scenario in India. Much is at stake even for the young and old incumbents, if and when they are allowed to bid in the spectrum auctions spirited with new rules which are to be laid down by TRAI.
Consumers might not necessarily lose, suggests the writer, for the competition for prices will still be ongoing "with at least six players, including a state-owned one in each circle."
It is to be seen if lawsuits will now emerge questioning the spectrum allotments in the past, for instance, the allocations during the Pramod Mahajan period. "How far back shall we go to unearth the wrongs of the past?"
Also called into question are the allocation of natural resources, even if the law suit was about radio spectrum, because of the condemning the 'first-come-first-served' principle, which is prominently used in "the hugely controversial business of mining." Certainly, the principle will have to be scrapped across several sectors.
-The Times of India, February 6, 2012
The Court Strikes Back
The Supreme Court's cancellation of 122 licenses have evoked mixed responses. While some share a "feeling of Schadenfreude," the others see it as an ominous sign for the already-teetering investment scenario in India. Much is at stake even for the young and old incumbents, if and when they are allowed to bid in the spectrum auctions spirited with new rules which are to be laid down by TRAI.
Consumers might not necessarily lose, suggests the writer, for the competition for prices will still be ongoing "with at least six players, including a state-owned one in each circle."
It is to be seen if lawsuits will now emerge questioning the spectrum allotments in the past, for instance, the allocations during the Pramod Mahajan period. "How far back shall we go to unearth the wrongs of the past?"
Also called into question are the allocation of natural resources, even if the law suit was about radio spectrum, because of the condemning the 'first-come-first-served' principle, which is prominently used in "the hugely controversial business of mining." Certainly, the principle will have to be scrapped across several sectors.
-The Times of India, February 6, 2012
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