Vodafone approaches FIPB for long distance, ISP licences

The country's second-largest GSM mobile services provider, Vodafone Essar, has sought Internet service provider and national long distance licences.

Company officials said that the operator has sought FIPB approval for these two licences and aims to become a full-fledged communication services provider in the country.

If Vodafone Essar, in which the UK-based mobile firm Vodafone holds majority stake, gets the national long distance licence (NLD) it will help the company save operating expenses for carrying STD traffic, instead of hiring other mobile company's network for the purpose.

Owning its own network for NLD traffic will also help the company offer competitive STD tariffs to the subscribers.

Vodafone's India partner Essar already has a NLD licence through its arm Shippingstop Dot Com. In fact, Vodafone Essar South already also has a NLD licence.

All the top mobile operators like Reliance Communications, Bharti, BSNL and MTNL have their own NLD infrastructure.

The company also plans to enter the Internet service segment in which all other major mobile operators like BSNL, Reliance Communications and MTNL has a presence.

Vodafone is the number two GSM player in the country in terms of subscribers.