ByCell gets security nod, to receive LoI soon

The Department of Telecommunications (DoT) will issue letters of intent (LoI) to Switzerland-registered ByCell Holdings, which will enable the company to start telecom services in the country.

The LoI was put on hold by DoT as the company had not obtained the requisite security clearances though it was heading the queue for spectrum allocation.

The department's move follows a security clearance from the home ministry and the nod from the Foreign Investment Promotion Board (FIPB). While the ministry nod came in January, the company got the FIPB go-ahead last week.

The company may also get the licence to commence 2G mobile services in the country. ByCell had applied for pan-India telecom licences.

The Swiss company had protested against the DoT move and had stated that security clearances were held up due to "fake complaints filed".

ByCell Holdings was planning to infuse an additional $500 million to offer GSM-based cellular telephony services.

The proposal of the company came under scanner after the PMO received complaints that the identities of the owners were not known.

ByCell Holdings had submitted a proposal in November 2005 for foreign collaboration for offering GSM-based cellular services, for which it got FIPB clearance in January 2006.

It was to commence operations through its subsidiary, ByCell Telecommunications India.

ByCell Telecommunications had roped in Indian company BitCorp as a partner and had applied for Universal Service Access Licences (UASL). The company was planning to invest $500 million in the next 3-5 years to expand its operations in India.