TRAI to cap foreign ownership of towercos

14 Feb 2012

The Telecoms Regulatory Authority of India (TRAI) has suggested capping foreign ownership of tower companies at 74%, reports Reuters. The move would bring infrastructure management companies under the same ownership restriction as mobile operators. After consultation with industry stakeholders, the TRAI will submit the proposal to the government for approval before the rule comes into effect. American Towers and Reliance Communications (RCOM) are expected to be affected most by the legislation. American Towers is 100% foreign-owned and, should the cap receive approval, would have to seek a local partner to continue operations in India. RCOM meanwhile, is currently seeking to raise funds by selling off its tower business and may struggle to entice overseas investors.