New Delhi (PTI): Foreign telecom operators who are aspiring to enter the Indian telecom space through the 3G licence auction route should not participate in the auction process at present as their growth prospects are limited by regulatory and market factors, said a report.

They should keep themselves out of the race for the time being and wait for a better time, suggests a recent report by research firm Strategy Analytics.

"We believe that foreign operators should adopt a wait and watch approach as the licensing and pricing policies will most likely change," said Rahul Gupta, author of the report.

Foreign operators like AT&T, Deutsche Telecom, NTT Docomo and others who have been eyeing the domestic market for a long time now finally got a chance to enter world's fastest growing telecom market but looking at the current 3G auction policy, it is advisable for them not to participate in the race, it said.

The report "3G Scenario in Emerging Markets" by the firm says the government's 3G policy is not suitable for the foreign players at present due to a number of factors like pricing structure and strict timeline.