|
| New norm expected to boost FDI in telecom: COAI |
| Press Trust of India / New Delhi Feb 12, 2009, 18:58 IST |
|
GSM operators' representative body Cellular Operators Association of India (COAI) today said the new FDI rules would bring in more foreign investment into the country.
"It is a win-win situation for the investor and the economy. More telecom investors would now look towards India," COAI Director-General T V Ramachandran told PTI.
So far, both direct and indirect foreign holdings, even if the latter were through an Indian-owned company, were considered when FDI was calculated; now what is held through a company controlled by Indians will be treated as domestic equity, giving more window for foreign equity to increase.
He said the sector needs huge investment in view of the low tele-density in the country and this change could act as a facilitator towards that.
Telecom companies like Bharti Airtel, Vodafone Essar and Idea Cellular, which have significant FDI, may well end up being the biggest beneficiaries. More or less all leading foreign players are present in India through joint ventures except with Reliance Communications and the two PSUs -- BSNL and MTNL.
In 2008 three global majors -- Etisalat, Telenor and NTT DoCoMo -- picked up stake in Indian telcos -- Swan, Unitech Wireless and Tata Teleservices, respectively.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
