Telcos await FDI deadline extension

Delay mainly because the Prime Minister's Office was yet to grant its clearance on the issue.

Indian international long-distance telecom operators today issued notifications to their international counterparts that remote access on their networks would be switched off from tomorrow.

They have, however, decided to not to go ahead with the move as the government later in the day clarified that a formal communication on the extension of the foreign direct investment guidelines in telecom by four months to July 4 would be issued before mid-night on March 3.

The present deadline to comply with all guidelines is March 3. Sources said the delay was because the PMO was yet to grant its clearance on the issue. "The PMO was tied up with President Bush's visit to India. But the clearance will come before the expiry of the deadline," sources said.

"Indian operators did not receive a formal communication on the extension. This resulted in chaos before the government finally clarified the matter today," explained an operator.

The notification for extending the time line will have to be issued by the department of industry policy and promotion, under the ministry of commerce and industry.

Officials at the department said since the notification was issued on November 3, the present guidelines were effective until the midnight of March 3.

The decision to extend the deadline to July 4 was taken on Wednesday, just as US President George Bush was beginning his India visit.

Several large US telecom firms have complained about the restrictive norms of the existing guidelines, including the one limiting remote access from overseas to networks in India.