Amid raging controversy over distribution of 2G licences at throw away prices in 2008, Director General of Audit has said that licences were granted to some companies without proper verification of their eligibility and other credentials.

"Most of these licencees exited the sector after merging with other operating companies. It is also understood that a concept of a bail out is being mooted for certain new licencees who could not successfully implement their business models and that such a proposal is likely to be submitted to the full Telecom Commission for consideration," R P Singh, DG, Post and Telecommunication, said in a letter to DoT.

Recently, a top official of DoT said that some of the new operators have approached them to surrender their licence and exit the sector.

The new operators were finding it difficult to battle it out in a market where about thirteen mobile service providers operate.

With tariffs hitting the rock bottom and average revenue per users coming down, the new operators were struggling to maintain a healthy margins.

About eight new operators including Datacom, Unitech, STel, Loop Telecom and Swan got licences in 2008.

To prohibit the new entrants from making unearned gains the government had put in a three-year lock-in period within which the promoters' have been barred from selling their equity. The lock-in period is scheduled to get expirted next year.

"... there are possibilities that some of the new operators are going to merge, after completing the mandatory period of three years could be holding more spectrum than stipulated. Further, allowing them to exit the sector before achieving their roll out obligations would mean that they were hoarding a valuable national resource without paying any revenue share to the national exchequer," he added.