GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARREDQUESTION NO: 1351
ANSWERED ON: 21.03.2012
IMPACT OF CANCELLATION OF 2G LICENSES
(a) whether the Government has assessed the likely impact of cancellation of 2G licences by the Supreme Court on telecom sector and the Foreign Direct Investment in the sector;
(b) if so, the details thereof and the corrective measures taken by the Government in this regard;
(c) whether some of the foreign companies have started winding up their services from the country;
(d) if so, the details thereof and the action taken/likely to be taken by the Governm
| ANSWER |
THE MINISTER OF STATE IN THE MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI MILIND DEORA) (a) & (b) Foreign direct investment decisions are based on totality of commercial considerations and it would not be appropriate to discern a link between a judgement of the Hon’ble Supreme Court and FDI into India.For telecom services Foreign Direct Investment (FDI) upto 74% is already allowed out of which 49% is through automatic route. (c) & (d) Consequent to Hon’ble Supreme Court Judgement dated 02-02-2012, M/s. Etisalat DB Telecom Private Limited,who has foreign equity participation in the company, has given notice to the Department of Telecommunications of its intention to shut down its telecommunications network by giving its subscribers 30 days notice. Another licensee M/s. S Tel Private Limited, who has also foreign equity participation, has stated that their network has been brought to a standstill. The Government proposes to take action as per the Supreme Court’s judgement and terms and conditions of the respective licences. (e) to (g) The interaction with the industry representatives is an ongoing process and the officials of the Government are accessible to the Industry representatives and seek to redress their grievances, wherever permissible |