Telecom sector still Cash Flow Negative

According to an article that appeared on 9th May in The Business Line, the committee that was set up by DOT to review TRAI's recommendation that existing player should follow three year equity lock-up period, is against the recommendation. The draft report mentioned 

“Despite exponential growth and the intense competition, the telecom industry even after 15 years of operation is cash-flow negative. Capital efficiency of the sector is an important pre-requisite for achieving consumer interest in a sustainable manner. Against the backdrop of the economic downturn, it is a challenge to raise funds and there is need for foreign investments. The lock-in period will only hamper growth of telecom market and competition,”

This step would be welcomed as the telecom industry is in the growth phase and requires capital for investment.