The Hindu Business Line : `FDI policy in telecom will ensure equality'

The Union Communications and IT Minister, Mr Dayanidhi Maran, has told Mr Ratan Tata that the policy on foreign direct investment in telecom will ensure level playing field for all operators. Responding to a letter written by Mr Tata in October seeking scrapping of paragraph 2 of Press Note 5, which relates to keeping companies with less than 49 per cent FDI within the purview of the new guidelines, Mr Maran said that the Government had taken a decision to evolve a consensus on the issue.

"The Department (of Telecom) had also examined the feasibility of suspending the operation of Press Note 5 itself until the emergence of a broad consensus among different stakeholders. However, it was the considered view of the Government that further discussions should be held, so as to evolve such a broad consensus," Mr Maran said, in a letter to Mr Tata.

The Tatas have been asking the Government to keep telecom companies with less than 49 per cent FDI beyond the stipulations of the Press Note 5.

The guidelines had raised a number of issues, including not permitting a foreigner to take key positions.

Tata Teleservices had objected to the provision since it has a foreigner as its CEO. Operators are also not comfortable with some other clause in the Press Note 5 such as those which bar remote access.

"My effort has always been to support a technology neutral regime, which is transparent, equitable and fair to all the players in this fiercely competitive sector so that no one feels at a disadvantageous position nor having to face a policy regime more onerous than one's competition," Mr Maran said, in the letter.

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