Govt nod to open telecom services for private sector

HT's report on central govt's policy shift, which triggered a telecom revolution in the country

- HT Correspondent

The government on September 17 allowed the private sector to participate in providing basic telecom services. Announcing this major policy decision on the eve of his departure for a 10-day tour abroad, communication minister Sukh Ram told a hurried press conference that only companies registered in India would be permitted to participate in providing basic voice telephone services. In the event of a joint venture between an Indian and a foreign company, not more than 49% foreign equity would be permitted.

With this the government has accepted almost all the recommendations of the Joshi Committee constituted by Mr Sukh Ram to frame the guidelines, barring the key recommendation capping equity participation by foreign companies at 25%. The change came about as the government wanted bigger investment sin the telecom sector, and that could come from foreign companies only.

Pressed by the media on whether the guidelines had been approved by the Prime Minister or the Union cabinet, Mr Sukh Ram said the government greenlit the rules and that it was immaterial whether the Cabinet or the Prime Minister had okayed them.