Clear Telecordia, send right signal: US

The US government has thrown its weight behind Telecordia Technologies that holds a 74% stake in MNP Interconnection Telecom Solutions (MITS), one of the two companies chosen to implement mobile number portability (MNP) in the country.

Minister-counselor for commercial affairs at the US embassy, Carmine D’Aloisio , has written a letter to finance secretary Ashok Chawla, urging the Indian government to send the “right signals” to American companies looking at investing in India.

Number portability will allow the country’s over 500 million mobile phone users to change their service provider, but retain the number. The step by the US official follows a move by the home ministry to revoke the licence given to MITS on the grounds that the company has operations in Pakistan. It has also said that the minority shareholder in the company, Deepak Talwar Consultants, has no experience in running telecom operations and is, therefore, just a front for the US firm.

“The company views India as a key market, and is currently committed to expanding its operations here. I hope that the company continues to thrive in India and your government sends the right signals about fairness and predictability in the India business climate, encouraging further American investment and participation in India,” Mr D’Aloisio wrote in his letter.

If the licence is suspended a significant amount of investments made by the US firm would be jeorpadised, the letter said, seeking an opportunity for Telecordia to address outstanding concerns.

Telcordia had to rope in Deepak Talwar Consultants as partner for its Indian operations with a 26% stake, as Indian regulations do not allow more than 74% foreign holdings in any company that offers communications and related services here. Syniverse, which is also based in the US, is the other company selected to implement number portability in the country. The home ministry had sought that FIPB review its clearance granted to the US firm to operate in India. The issue was deferred at the FIPB’s last meeting held on January 18. The selected firms will set up exchanges, maintain database and facilitate portability. Industry estimates put the business opportunity at $50-100 million.

Putting its objections on record, the home ministry in a communication to DoT said that Deepak Talwar Consultants have no expertise in running a telecom network and the US firm will have full control over the company, both administratively and technically, even though day-to-day operations may be entrusted to Indian nationals.

“As the networks will have complete mobile number portability (MNP) data for routing calls, the foreign partner may be in a position to exploit the same for its country’s interest and also for its commercial interest. Besides, the company has a presence in Pakistan,” the home ministry said in the communication recently.