FDI In Telecom Sector

On July 31, 1995, mobile telephony began in India at Rs 16.80 a minute peak tariff. Now, most local voice calls are free, a market which has the largest subscriber base in the world after China

The new telecom policy is likely to be placed before the Cabinet for approval on Wednesday, according to official sources

The government is finalising a plan to allow 100 per cent FDI for telecom services through the automatic route which allows firms to attract foreign funds without its approval, sources said today.The proposal is likely to be considered by the Telecom Commission, the apex decision making body of the Department of Telecom, at its meeting scheduled for tomorrow, they said."The TC is likely to consider raising of FDI limit up to 100 per cent for all telecom services including infrastructure through automatic route," a source said.At present 100 per cent FDI is allowed, of which up to 49 per cent investment in a company can be done through the automatic route. The inflow of overseas investment beyond that requires government approval because of security reasons.The panel is also likely to discuss the relief package recommended by an inter-ministerial group (IMG) for the telecom sector which is reeling under debt of around Rs 4.5 lakh crore.In its September meeting, the Telecom Commission ..