Govt to play fair on telecom security, Maran tells Tata

The telecom ministry is trying to reach a consensus with stakeholders on Press Note 5, which deals with restrictions on telecom operators on grounds of security, and put in place a new telecom regime free of bias.

In his reply to a letter written by Ratan Tata, chairman of Tata Sons Ltd, Telecom Minister Dayanidhi Maran said, "The DoT has been endeavouring to evolve a broad consensus among different stakeholders and prescribe a policy regime free of biases."

Tata had written to the minister in October on various issues related to Press Note 5, including the suspension of Para 2, which said conditions related to security issues were also to apply to existing telecom operators with an FDI cap of 49 per cent.

The note puts various restrictions on telecom companies with foreign direct investment, on issues such as having foreigners at key management positions and remote access.

With uncertainty prevailing for around two years now, the telecom industry has urged the government to go back to the earlier regime that had an FDI cap of 49 per cent.

Maran said the method of calculation of FDI in Press Note 5 was different from that followed before its issuance on November 3, 2005.

He added, "The department has also examined the feasibility of suspending the operation of Press Note 5 until the emergence of a broad consensus among various stakeholders."

To this end, the government had further extended the deadline for compliance with Press Note 5 by three months to January 2, he said.