The Hindu Business Line : Tata Teleservices' long distance application may be rejected

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The Government had earlier extended the time for complying with the guidelines till October 2, 2006.
The Department of Telecom has decided that companies applying for a fresh telecom services licence will have to comply with the new guidelines

New Delhi , Aug. 20

The Department of Telecom may reject the application given by Tata Teleservices for long distance telephony licence on the ground that the company has a foreigner as its Chief Executive Officer.

As per the new FDI guidelines as notified in the press note issued in November 2005, no Indian telecom operator can have a foreigner in key positions such as the CEO or the Chief Financial Officer. While the Government had earlier extended the time for complying with the guidelines till October 2, 2006, the Department of Telecom has decided that companies applying for a fresh telecom services licence will have to comply with the new guidelines.

"The extension till October 2 has been given to operators who already have a licence. But if any company wants a new licence then it will have to comply with the norms from the day it puts in its application. "We have raised the issue with Tata Teleservices," said a senior DoT official.

Tata Teleservices sources said that they were yet to receive any direction from DoT in this regard. Earlier, DoT had put on hold the Tatas' application for long distance licence as it was found to be incomplete.

DoT had sought clarification on the foreign direct holding in the company and also on the issue of having a foreigner as its CEO. Mr Daryl Green, an Australian, is the CEO of Tata Teleservices.

While the Tatas gave a certificate with regard to its equity holding pattern, on the foreign CEO issue, the company, in its response to DoT, said that it had time till October 2 to comply with the FDI guidelines.

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