Let a clear picture emerge in October when it will be known if a company will be allowed to have a foreign CEO or not in the first place.
Till then there will be no decision on their STD applications, official sources said. DoT has already sought certain clarifications on the company's NLD plans as well as the foreign CEO from TTSL.
They are yet to reply anyway why do they want a separate license for NLD when their group company VSNL is there already, the source queried.
Tata Teleservices has a foreign CEO - Darryl Green. The crux of the matter is the foreign CEO issue, which is yet to be resolved.
While current guidelines state that whether foreign direct investment is there in a company or not, they will have to abide by the guidelines which allows only Indian CEO, CTO and CFO.
The department of telecom had opposed such norms saying the industry finds it too restrictive and globally Indians are heading top telecom companies. So with home ministries clearance, a foreign CEO can be allowed.
But with security agencies opposing any such point of view, it remains to be seen what final call this particular aspect takes when the current compliance time period expires in October.
The guidelines were announced by the Department of Industrial Policy and Promotion in 2004. Tata Tele currently uses the NLD network of VSNL. Receiving the NLD licence would be a major windfall for Tata Teleservices as it would add another product to their bouquet, which the company can retail through its existing retail chain.
The company, however may not be investing in laying its own optic backbone and would lease bulk bandwidth and equipment from its sister concern Videsh Sanchar Nigam Ltd.
