The Hindu Business Line : FIPB defers decision on ByCell proposal

“Additional details on directors of the company (including Indian directors), nationality and information on global operations of the company are currently being looked into,” sources said.

Moumita Bakshi Chatterjee
Thomas K. Thomas

New Delhi, Nov. 16 The Foreign Investment Promotion Board (FIPB) on Friday deferred a contentious ByCell proposal entailing infusion of additional investments into India, after the Ministry of Home Affairs sought more time to go through the details of the firm and its ownership.

The proposal of the company — which wanted to hike its investment in the telecom sector to apply for new licences for pan-India operations — is likely to be taken up at the next meeting of the FIPB.

The proposal had come under scanner after the Prime Minister’s Office received certain complaints that the identity of the owners was not known. “Additional details on directors of the company (including Indian directors), nationality and information on global operations of the company are currently being looked into,” sources said.

ByCell Holding AG, Switzerland, had submitted a proposal in November 2005 for foreign collaboration for offering GSM-based cellular telecom services in five telecom sectors of Assam, Bihar/Jharkhand, North East, Orissa and West Bengal.

Equity infusion

The earlier proposal had entailed foreign equity participation of 74 per cent amounting to $100 million in the next 3-5 years in the paid up capital of the Indian company. The balance 26 per cent was to be held by the Indian investor. FIPB granted an approval to the company on January 17, 2006.

Pan-India operator

Following the nod, a joint venture company was established in the country under the name ByCell Telecommunications India Pvt Ltd, wherein BitCorp Pvt Ltd, an Indian company was inducted as a joint venture partner. The Board of Directors of ByCell Telecommunications India, in conjunction with ByCell Holding AG and BitCorp, has now decided to apply for UAS licences for other circles in India to enable the company to become a pan-India operator.

“This would entail applying for new UAS (unified access service) with the Department of Telecom…This would further entail an additional investment by both the shareholders – ByCell Holding AG and Bitcorp. ByCell India proposes to actively pursue the UAS licence applications with the DoT and upon its receipt, actively take steps for the roll-out of GSM cellular telephone system in the licensed circles with special emphasis on new and high technology equipment and low cost telephony,” the company said in its application.

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