DoT says: FDI limits unchanged; unbundling unlikely; MVNOs considered

14 Jul 2006

The Department of Telecommunications (DoT) has rejected proposals to automatically allow up to 74% foreign direct investment (FDI), saying it is not feasible on account of national interest. Under the current policy, approval from the Foreign Investment Promotion Board is needed for FDI over 49%. The regulatory body also said that it believes local loop unbundling has not succeeded in most developed countries and that it stifles infrastructure-based competition and technical innovation.Finally, it revealed that amendments to licensing conditions are being considered that could lead to the launch of MVNOs and resellers.

India