BT Group is to offer long distance services in India, taking advantage of new rules liberalising foreign investment in telecom service providers.
The UK telecoms giant has been issued letters of intent by the Indian government for the award of licences for national and international long distance services from the country. The licences, when awarded, will enable BT's joint venture company in India, BT Telecom India, to provide services directly to multi-site corporate customers in the Indian market, BT said Thursday.
New rules of the Indian government, announced in November last year, allow companies with foreign ownership of up to 74% to offer telecommunications services in the country. Before this rule, foreign investment was limited to 49%, which was not seen as attractive enough by many multinational telecommunications companies.
BT applied earlier this year for the licenses with India's Department of Telecommunications (DoT) through BT Telecom India, a joint venture between BT and Jubilant Enpro, a company in Delhi engaged in the businesses of oil and gas, food and services.