Tuesday 15 May 2012

TRAI proposes to bring down FDI limit in telecom tower to 74%

TRAI plans to bring down the FDI limit for infrastructure providers for telecom services to 74% from 100 at present, within a period of three years after Unified Licensing regime comes into force. 
The DoT has asked Trai to reconsider its recommendation on Unified Licences for IP-I companies (also known as telecom towers), since lowering of Foreign Direct Investment (FDI) in these companies will "adversely" impact investment in infrastructure. 

Trai estimates that bringing IP-I under the licensing regime will fetch the government revenues of around Rs 1,900 crore per year, if the FDI limit is mandated to Telecom Towers. 
As per the recommendation, those companies who either want to provide telecom services themselves or are in the business of selling, leasing or renting their infrastructure to other telecom licensees, will need to have Unified Licence. Under licence condition, these companies will have to pay a proposed 8% annual licence fee on adjusted gross revenues which they are not required to pay at present.

Source:
http://cablequest.org/news/telecom-news/item/991-trai-proposes-to-bring-down-fdi-limit-in-telecom-tower-to-74.html

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