India entry to become tougher for foreign telcos

April 7, 2014

spectrumEntry to Indian market is going to be tougher for foreign telecom companies. The Government has proposed to make security clearances mandatory for foreign telecom companies, irrespective of how much equity they hold.

At present, foreign telecom companies do not require security clearances for entering India with up to 49% equity holding, and they only require security vetting beyond 49% equity holding which is cleared by the Foreign Investment Promotion Board (FIPB). The security clearance is given by the Ministry of Home Affairs (MHA). The Department of Telecommunications (DoT) members are scheduled to meet on Thursday to discuss the recommendations of the Committee of Secretaries on the issue. Source

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