Amid allegations of flip-flops in allocation of 2G spectrum and corporate houses getting into bitter spat, India Inc today raised concerns that the controversies could dent investor confidence in the telecom sector.
The newly-elected President of industry body Assocham, Dilip Modi today said, "Uncertainty hurts industry... At the end of the day, when you hear about showcause notices and licence cancellations (of telecom operators), there is an uncertainty. It will definitely, reflect on investment."
For, these reasons investment climate could be negative, he said.
To what extent, such a murky war in the telecom industry would tarnish the credibility of the sector, Modi, who also leads telecom firm Spice Mobility said: "When any industry comes under scanner, all the stakeholders also come under the scanner...It does affect credibility."
Modi, who was one of the early mobile operators, added that the telecom industry should not be viewed in a negative light. "It doesn't deserve it."
He had exited the sector in 2008 by selling his stake in Spice Communication which merged with Idea Cellular.
Modi is assuming the role of Assocham President at a time when telecom, one of the success stories of the Indian economy, is going through uncertain times.
Moreover, top industry players are hurling allegations against each other.
A worried Modi said that investors need a stable policy environment.
When asked about telecom operators not sharing information with the government on 2G spectrum allocation in 2008, Modi made it clear that if there are rules and regulations laid by the government, the corporates should have followed them.
Modi, 36, who is the youngest President of the Chamber of Commerce, said that he has a lot to learn from his current job.
"This job will expose me to more opportunities, the country has to offer... It is going to be on-the-job learning for me," he said.
