This is the first time a mobile player has voiced its opinion on this issue since Trai consultation paper sought players' views on the issue. Even though it is the Cellular Operators' Association of India, which will formulate the formal response to the regulator on the issue, the opinion of a constituent member cannot be seen in isolation.
"As far as we are concerned, we are in favour of competition. We believe the consumer must have a choice. Let the consumers decide what is good for him in terms of the number of players," said managing director Umang Das on the sidelines of an event related to the company's upcoming IPO.
"But we believe competitive choice must be given to the customer and number should not be an issue. The issue is the quality of the offerings. If number becomes the inhibiting factor towards investment, then there is a concern," he added.
When asked whether it will hurt the new aspirants', like Spice, expansion plans if finally the government caps the number of players, Das said, "There will always be some alternate growth plans."
"I am sure the government will encourage aspirations of every player and if spectrum scarcity is an issue than consolidation-based growth like mergers and acquisitions, spectrum- sharing models, Mobile Virtual Network Operator modelÂ…there are so many ways." he said.
Telecom analysts say capping of licensees in a service area may hurt the expansion plans of those who have presence in a few service areas but are aspiring for pan-India operations.
At present, there are four operators who have all India presence. Others are present in few service areas but have applied or may apply in future for grant of licences on all India basis.
It is also a known fact that licencees who are operating in all the states/service area get the benefit of economy of scale in procurement, advertising, centralised billing system, lower tariff for calls, national roaming.
Therefore, determination of the number of access providers may rebel against a concept of level playing field.
Department of Telecom in its letter to Trai said: "These are increasing the demand on spectrum in a substantial manner. The government is contemplating to review its policy."
"A suggested option can be to put a limit on the number of access service providers in each service area, in view of the fact that spectrum is a scarce resource and to ensure that the adequate quantity of spectrum is available to the licencees to enable them to expand their services and maintain the quality of service," the department added in its statement.