Wednesday, February 15, 2012

Trai wants FDI cap on tower companies cut to 74%

The telecom regulator has recommended lowering the foreign direct investment cap on telecom tower companies to 74%, a move that will adversely impact the Indian operations of Nasdaq-listed American Towers (ATC) as well as stake sale plans of other tower units. At present, 100% foreign direct investment is allowed in tower companies but Trai wants to lower this limit and bring it on a par with other telecom services, which are subject to a 74% cap. "We plan to bring all forms of telecom services under a unified licence regime. Existing infrastructure providers would be required to take new unified licences as soon as they come into being and the conditions in the unified licence will apply to tower companies too," said an official of the Telecom Regulatory Authority of India (Trai).
Source: Business Standard

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