Date:30/06/2006 URL: http://www.thehindu.com/2006/06/30/stories/2006063004821500.htm

Business

Telecom FDI: more time for companies

Special Correspondent

Revised deadline is July 2

NEW DELHI: The Union Cabinet on Thursday gave private phone companies another three months to comply with the new norms incorporated after the increase in the ceiling on foreign direct investment in the telecom sector from 49 to 74 per cent.

Phone companies falling in this category now have time till July 2 to comply with the norms since the earlier deadline of four months had expired on March 2.

The new norms that have to be complied with include a ban on remote access for repairing of equipment, appointment of Indians in key positions and providing certain accounting information.

The extension of the deadline was requested by the Department of Telecom to "give more time for further consultation with different stakeholders and in the meantime maintain the continuity of operation in the telecom and IT sectors,'' Parliamentary Affairs Minister P. R. Dasmunsi told newspersons.

The Government also received several representations for reconsideration of the conditions, including one by the United States Trade Representative on the ban on remote repairing of equipment. The condition was added after Left Parties expressed concern over the security implications of hiking the FDI limit to 74 per cent.

The Government has simplified the procedure for putting up antenna towers and masts to accelerate the roll - out and growth of various telecommunication networks.

The Department of Telecommunications (DoT) in consultation with the Ministry of Defence and the Airports Authority of India has scrapped the detailed clearance procedure for towers located 7 km from the nearest airport and having up to 40 meters above the Above Mean Sea Level (AMSL) of the Airport Reference Point (ARP) of the concerned airport.

For now onwards, phone companies only have to register online with the Wireless Planning Cell (WPC) or the Standing Committee on Frequency Allocation (SACFA).

In addition, the geo-coordinates and AMSL information to be submitted in the SACFA applications can now be obtained using a standard Global Positioning System (GPS) receiver.