Telstra keen to enter longdistance market
24-11-2009
Many global majors are doing well in this market
Australian telco Telstra has applied for entry into India to provide telecom services to MNC customers. The company wants to use the ISP (internet service provider), NLD (national long distance) and ILD (international long distance) route for that.
Telstra, which was in a joint venture with the Modi group in India earlier, never returned after selling its stake some years ago. But Telstra never lost interest in India, it is believed, especially as the telecom market in Australia is saturated, while the teledensity in India is still around 50%.
Telstra has sent its proposal to the Foreign Investment Promotion Board (FIPB).
The ILD and NLD licencees in India include foreign players like BT Global, AT&T, Vodafone, Verizon, and SingTel Global. It is learnt that some of these, and even Telstra, may like to bid for the upcoming broadband wireless services in January 2010.
While 3G spectrum auction is scheduled to begin on January 14, 2010, broadband wireless bidding would be held two days after the close of 3G auction.
In the recent past, a Telstra official had indicated that Australian companies can be expected to actively pursue the economic opportunities in India as they have in China.
To promote growth of NLD service, the entry fee for new licence was recently reduced from Rs. 100 crore (Rs1 billion) to Rs. 2.5 crore. The annual licence fee for NLD licences was slashed from 15% to 6% of AGR.
As for ILD service, the entry fee was reduced from Rs 25 crore to Rs 2.5 crore. And, the annual licence fee for ILD licences was decreased from 15% to 6% of AGR.
Foreign investment in the telecom sector is currently capped at 74 per cent. Also, there are several security-related conditions that a telco must satisfy to operate in India.
Inputs from DNA newspaper
Australian telco Telstra has applied for entry into India to provide telecom services to MNC customers. The company wants to use the ISP (internet service provider), NLD (national long distance) and ILD (international long distance) route for that.
Telstra, which was in a joint venture with the Modi group in India earlier, never returned after selling its stake some years ago. But Telstra never lost interest in India, it is believed, especially as the telecom market in Australia is saturated, while the teledensity in India is still around 50%.
Telstra has sent its proposal to the Foreign Investment Promotion Board (FIPB).
The ILD and NLD licencees in India include foreign players like BT Global, AT&T, Vodafone, Verizon, and SingTel Global. It is learnt that some of these, and even Telstra, may like to bid for the upcoming broadband wireless services in January 2010.
While 3G spectrum auction is scheduled to begin on January 14, 2010, broadband wireless bidding would be held two days after the close of 3G auction.
In the recent past, a Telstra official had indicated that Australian companies can be expected to actively pursue the economic opportunities in India as they have in China.
To promote growth of NLD service, the entry fee for new licence was recently reduced from Rs. 100 crore (Rs1 billion) to Rs. 2.5 crore. The annual licence fee for NLD licences was slashed from 15% to 6% of AGR.
As for ILD service, the entry fee was reduced from Rs 25 crore to Rs 2.5 crore. And, the annual licence fee for ILD licences was decreased from 15% to 6% of AGR.
Foreign investment in the telecom sector is currently capped at 74 per cent. Also, there are several security-related conditions that a telco must satisfy to operate in India.
Inputs from DNA newspaper
