Dot To Ease Equity Holding Norms For Paging Firms

The department of telecommunications (DoT) plans to relax the equity holding norms for paging companies. The current guidelines specify that foreign partners should hold at least 10 per cent in a paging company for a minimum period of three years from the signing of the licence.

This relaxation, which was announced by telecom secretary A V Gokak during a meeting with the Indian Paging Services Association (IPSA) last week, has been interpreted as a significant decision by the telecom services industry. Sources in cellular and basic telecom services feel that once this relaxation for paging companies is notified, they have a good chance of being allowed the same.

 

Says the CEO of a Delhi-based cellular company, The cellular industry is going to be in bad shape in the days to come. It will be in worse shape than the paging industry. So, if the government is willing to make relaxations for the ailing paging industry now, it will have to do the same for the cellular and basic telecom companies.

Gokak promised IPSA several other sops at the meeting last Wednesday. The period during which paging companies are required to start operations