India’s economic affairs secretary Arvind Mayaram has written to Department of Telecommunications (DoT) secretary F Farooqui, requesting that the watchdog suggest measures to boost foreign direct investment (FDI) in the telecoms sector, noting that foreign investment in the segment fell by around 81% in the 2012-2013 financial year. The Business Standard writes that FDI fell from INR122.70 billion (USD1.948 billion) in 2009-2010 to INR90.120 billion in 2011-2012 before plummeting to just INR16.54 billion in 2012-2013. Regulatory uncertainty in the sector in the wake of the February 2012 Supreme Court’s mass cancellation of operating licences, caused a number of foreign-owned operators to either quit the sector or curb spending. The DoT and its sister-watchdog the Telecom Regulatory Authority of India (TRAI) have sought to increase investment by cutting the reserve price for spectrum in upcoming auctions and lifting the maximum stake a foreign company can hold in an Indian telecoms provider from 74% to 100%. Mayaram’s letter urged the DoT to attract investment from large, international firms that currently do not have a presence in India, including China Mobile, South Korea’s SK Holdings, Deutsche Telekom (DT) of Germany and Mexican firm America Movil (AM).
Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.
Browse Past Issues
Filter CommsUpdate by the following categories or use the search.
Visit our help page information on performing advanced searches, including how to restrict the results by country or company.
CommsUpdate is an outstanding advertising venue for companies seeking to reach:
- International carriers
- Wholesale service providers
- Equipment and software vendors
- Telecom investors