India’s Telecom Commission has reportedly endorsed a proposal which would remove the 74% foreign investment limit for telcos and allow for full ownership.
At present, foreign investors such as Sistema, Vodafone and Telenor have to team up with local…
India’s Telecom Commission has reportedly endorsed a proposal which would remove the 74% foreign investment limit for telcos and allow for full ownership.
At present, foreign investors such as Sistema, Vodafone and Telenor have to team up with local partners.
The Telecom Commission, part of the telecoms ministry, intends to send its recommendations to the Department of Industrial Policy and Promotion (DIPP), Indian and international media reported quoted unnamed officials. The proposal will need final approval from the Cabinet Committee on Economic Affairs.
A Reuters report quoted an unnamed senior government official as saying the process should be carried out in consultation with the home and other concerned ministries.
Various media reports have stated the home ministry has expressed security concerns about increasing foreign ownership in telecoms and certain other sectors.
Sistema’s Indian unit, which operates under the MTS brand name, welcomed the Telecom Commission’s endorsement in a statement, describing it as a “much-needed” policy decision that will benefit the telecoms sector and consumers.
Aircel, in which Malaysian telco Maxis has a controlling stake, also welcomed the move, saying in a statement that it will help the telecoms sector attract greater foreign investment “to fund the high capex demands of this sector”, particularly in relation to launching new 3G and wireless broadband services.
