AT&T rejoins ILD services

By agencies   |   Wednesday, 09 August 2006, 19:30 IST
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NEW DELHI: The U.S based telecom major; AT&T Global Network Services is all set to enter the Indian Telecom sector through a joint venture with the Mahindra group, wherein it would hold 74 percent equity. The Department of Telecommunications is in the final stages of giving its approval to the company’s application for a international long distance license. Earlier, the company had sought the government’s permission to penetrate the Indian market but this plan had hit a road-block with the Foreign Investment Promotion Board, as the DoT received complaints that the company’s sister concern, AT&T Communications, was offering services without proper licenses. However, a committee set up by the DoT to examine new applications for fresh licenses, studied that the government could not hold back grant of new licenses if the applicant or its sister concerns were being inspected for any violations. The company was maintaining a low profile for some time ever since it sidetracked from mobile division and sold it off to Cingular. AT&T was earlier a strategic financier in Idea Cellular along with Tatas and Birlas. The company is likely to face competition with the likes of Bharti, Reliance Communications, BSNL, VSNL and MTNL. The government has so far granted ILD licenses to six companies and the NLD license to nine companies, which include HCL Infinet, PowerGrid, Tulip IT and RailTel.