New Delhi: Telecom companies are stunned by the recommendations of Telecom Regulatory Authority of India (TRAI). Country’s second biggest mobile company Vodafone India has already said that if these recommendations are implemented, call rate hike is inevitable.

Norway’s Telenor has already started to wind up their business in India and said that with the recent recommendations they are not going to participate in the upcoming auction process. Bahrain Telecom had pulled out their investments from India after the Supreme Court’s rulings. Talking on the recent TRAI recommendations, Bahrain Telecom has said that they are not willing to enter the Indian telecom market again.  

Vodafone India has written to Telecom Minister Kapil Sibal. Company has said that with new spectrum allocations, there will be an additional burden of 10,000 crore. The additional burden will be passed on to the customers by increasing call rates. Vodafone India Resident Director TV Ramachandran has mentioned in the letter that this amount can be used for preparing telecom infrastructure in 50,000 villages across the country.
Vodafone India has also raised concerns over the recommendation of setting up separate tower for different companies. Company has said that this will increase diesel usage and cause more environmental pollution.

Telenor Executive Vice President Sigve Brekke ruled out the chances of his company to participate in the auction process with recommendations of TRAI. If Telenor leaves Indian telecom market then the onus will lie on the Indian government. Telenor has also apprised the Oslo Stock exchage that with the uncertain investment atmosphere in India, company has written-off investment worth USD 68.2 crore. Company had invested this amount to buy stakes in Unitech Wireless.