Telecom Regulatory Authority of India (TRAI) has suggested bringing down the foreign direct investment ( 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 Department of Telecommunications ( DoT) on May 2 had sought clarifications on its recommendation on 'Guidelines for Unified Licence/Class Licence and Migration of Existing Licences' issued by TRAI on April 16.
'In case of Infrastructure Providers (IP-I), it should be mandated that the limit of FDI should be brought down to 74% within a period of three years of Unified Licensing regime coming into force,' TRAI said in its response to concerns raised by DoT.
The DoT has asked TRAI to reconsider its recommendation on Unified Licences for IP-I companies (also known as telecom towers), since lowering of 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 Rs1,900 crore per year.
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.
....more info
The Department of Telecommunications ( DoT) on May 2 had sought clarifications on its recommendation on 'Guidelines for Unified Licence/Class Licence and Migration of Existing Licences' issued by TRAI on April 16.
'In case of Infrastructure Providers (IP-I), it should be mandated that the limit of FDI should be brought down to 74% within a period of three years of Unified Licensing regime coming into force,' TRAI said in its response to concerns raised by DoT.
The DoT has asked TRAI to reconsider its recommendation on Unified Licences for IP-I companies (also known as telecom towers), since lowering of 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 Rs1,900 crore per year.
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.
....more info