The Telecom Regulatory Authority of India (Trai) has suggested limiting the percentage of foreign holding in a telecom tower company at 74%.
Currently, foreign direct investment in mobile operators is capped at 74% but there is no such limitation in …
The Telecom Regulatory Authority of India (Trai) has suggested limiting the percentage of foreign holding in a telecom tower company at 74%.
Currently, foreign direct investment in mobile operators is capped at 74% but there is no such limitation in towercos.
If approved by the government, this new rule is expected to be a blow to some companies, including Reliance Communications. The second-largest carrier in the country, which is struggling with US$7bn worth of liabilities, has been looking to sell its tower unit Infratel for several months in order to cut down its debt load.
Meanwhile, US-based American Tower might reportedly be forced to find a local partner to continue operating its towers in the country.
The Trai’s recommendation was made as part of draft guidelines on the ‘unified licence’ regime, which may not only apply to mobile operators but also to towercos.
A unified licence is expected to allow operators to choose the telecom services they want to provide under a single licence.
