Government permits 100 per cent Foreign Direct Investment ( FDI ) in telecom

By July 17th, 2013 AT 1:09 PM

The government has permitted 100 per cent Foreign Direct Investment (FDI) in the telecom sector, meeting a long-standing demand for a debt-ridden sector.

mobile-towerThe decision was taken at a meeting held by the Ministry of Commerce and Industry, Chaired by the Prime Minister. Prior to this, the country only permitted 74 per cent FDI in the sector.

“The cap has been raised to 100 per cent from 74 per cent in basic and cellular (fixed and mobile) services. Up to 49 per cent remains under automatic route and 49-100 per cent through FIPB (Foreign Investment Promotion Board) route,” Commerce and Industry Minister Anand Sharma said in New Delhi on Tuesday.

At present, the FDI limit in basic and cellular Services has been 74 per cent and up to 49 per cent through automatic route and 74 per cent though FIPB route.

Aircel has also issued a statement citing the move to increase Telecom cap of 74% FDI to 100 % is welcome as it will help the industry to bring in more FDI to fund the high CAPEX demands of this sector especially in areas to enhance coverage, and launch new 3G and BWA services. This will undoubtedly have a huge benefit for our customers and higher license fee for the government.

Read more on:

Leave a Reply

Photo and Image Files
11 Comment threads
10 Thread replies
Most reacted comment
Hottest comment thread
20 Comment authors
AnonnameKarandeep singhAnimesh SenguptaFact Recent comment authors
newest oldest most voted

damn it spoiling country


The only way to improve the telecom sector is to throw out the govt.

Animesh Sengupta
Animesh Sengupta

I agree

Recent Posts

Airtel Digital TV Offering Discounted NCF of Rs 80 on Second Connection, Reveals Multi-TV Policy

More and more DTH operators are coming up with their multi-TV policies as the days pass. The new mandate by...

BSNL Revision Spree Continues, Telco Reduces Validity of Rs 666 Prepaid Plan

Since the start of February 2019, BSNL has been aggressively revising its tariff plans. While some of the changes it...

Individual Channels vs DTH Recommended Packs After Trai Mandate: How it Affects Your Overall Monthly Bill?

The Telecom Regulatory Authority of India’s new mandate regarding the prices of channels and cable TV subscription has brought a...