On the issue of whether the Government has assessed the likely impact of cancellation of 2G licenses by the Supreme Court, and Foreign Direct Investments ( FDI) in the sector, the Government has said that FDI decisions are based on totality of commercial considerations and it would not be appropriate to discern a link between a judgment of the Supreme Court , and FDI into India. For telecom services Foreign Direct Investment upto 74% is already allowed out of which 49% is through automatic route.

Consequent to the Court Judgment, M/s. Etisalat DB Telecom Private Limited, which has foreign equity participation, has given notice to the DoT of its intention to shut down its telecommunications network by giving its subscribers 30 days notice. Another licensee M/s. S Tel Private Limited, which also has foreign equity participation, has stated that their network has been brought to a standstill.

The Government proposes to take action as per the Supreme Court’s judgment,and terms and conditions of the respective licences.

The interaction with the industry representatives is an ongoing process and the officials of the Government are accessible to the Industry representatives and seek to redress their grievances, wherever permissible.

This information was given in Lok Sabha today by Shri Milind Deora, the Minister of State, Communication and Information Technology in response to a question.

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September 2021