The Hindu Business Line : Govt says no to Telstra's Net telephony plan

THE Government has refused permission to the Australian telecommunication and information services major, Telstra, to start Internet telephony services in the country. The company has also been refused permission to provide leased Internet access services, Web and management services and co-location services.

Telstra Holding Pty Ltd's wholly-owned Indian subsidiary, Telstra India Pvt Ltd , had recently moved the Foreign Investment Promotion Board (FIPB), seeking permission for a wide range of activities that the company wished to start in India.

The company already has permission for providing network designing and other consultancy services in telecommunication to third parties, as well as to provide maintenance support to all Telstra group activities in India and elsewhere through the Indian subsidiary.

The company also has permission to undertake installation and maintenance of hardware and software systems in India and provide administrative and marketing support to Telstra joint ventures in the country.

Recently, the company had approached the FIPB for a host of additional activities, following which the Board sought the Department of Telecommunication's (DoT) opinion.

Following recommendations from the DoT, the FIPB agreed to allow Telstra India to undertake Internet access services (without Internet gateway services) and value added services such as electronic mail and voice mail. This is because as per the current rules, 100 per cent foreign direct investment is permitted for Internet service providers not providing gateway services, subject to the condition that the foreign investor will divest 26 per cent of its equity in favour of the Indian public within a period of five years, if the foreign investor is listed in other parts of the world.

DoT, however, has not agreed to allow Telstra India to provide Internet telephony services, leased Internet access services, Web and management services and co-location services in India, following which the FIPB has rejected permission to the company for undertaking these activities.

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