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Rediff.com  » Business » Foreign firms may get to service telcos

Foreign firms may get to service telcos

By Joji Thomas Philip in New Delhi
January 20, 2006 11:30 IST
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The government is looking into telecom operators' demand for the provision of remote accessibility for network infrastructure vendors to repair faulty equipment.

Bharti could be the biggest gainer as the maintenance of its entire mobile network is outsourced.

The government is also examining the possibility of relaxing the clause of "deemed cancellation" of licence if the service provider fails to adhere to the new foreign direct investment norms by March 6, 2007.

According to the revised FDI norms notified in November 2005, remote access cannot be provided to foreign players for servicing telecom networks in India without the prior permission of the Intelligence Bureau.

The notification also stated that licences would be cancelled if service providers failed to adhere to the revised guidelines within four months.

Keeping security concerns in mind, the government may consider granting remote access with riders such as operators requiring to specify a time-period for allowing this facility after informing the government and the intelligence agencies of specific locations in the network where repairs were needed, government sources said.

Meanwhile, responding to a question on the reviewing of the FDI norms in telecom Communications and IT Minister Dayanidhi Maran said he was not even aware of any such move.

Commerce and Industry Minister Kamal Nath had on Tuesday said the government was looking at reviewing the guidelines, following a demand by the industry to hire expatriates to fill top positions.

The move follows an application by Tata Teleservices saying that the requirement under the new norms to have only resident Indian citizens as senior management was coming in way of an appointment made by the company before the norms were notified.

The Investment Commission, headed by Ratan Tata, has also written to Commerce and Industry Minister Kamal Nath and Finance Minister P Chidambaram on the issue.

On The Cards

  • Relaxing the clause of 'deemed cancellation' of licence if the service provider fails to adhere to the new FDI norms by March 6, 2007.
  • Govt may grant remote access with riders like operators being required to specify time frame for allowing this facility. 
  • Revised FDI norms notified in November 2005 said remote access cannot be provided to foreign players without prior permission of IB Rs 451 crore for telephony in 66,822 villages.
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Joji Thomas Philip in New Delhi
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