Telcos against PMO's FDI stand

Cellular operators are up in arms against a move by the Prime Minister's Office (PMO) to tag security restrictions on telcos to the level of FDI in them.

Speaking to Business Standard, T V Ramachandran, director general of the Cellular Operators' Association of India (COAI), said: "What we have asked for is a level playing field, and we believe that there should not be any dilution of security requirements based on FDI levels."

The COAI's view is in line with that of the Department of Telecommunications(DOT), which in a cabinet note on security restrictions has said that the diluted Press Note 5 proposed will be applicable to all telcos, irrespective of their levels of FDI.

The PMO, rejecting the cabinet note, has said that the diluted Press note 5 will not be applicable to companies with an FDI level below 49 per cent.

Under Press note 5, which was initially notified last year, numerous security restrictions were imposed on telcos with FDI -- foreigners could not be appointed as managing director, CEO,or CTO, and operators could not give remote access to their networks, among other things.