The foreign investment promotion board (FIPB) has finally approved US-based Telcordia Technologies? proposal to function as one of the two clearing houses for managing number portability in the country. Interestingly, the development comes at a time when US President Barrack Obama is on a visit to India. The approval to Telcordia also comes at a time when mobile number portability (MNP) is set to be implemented across the country in a phased manner from November 25.
The home ministry has put forward security conditions on Telcordia, and these are similar to those which telecom vendors importing software and hardware equipment have to follow. Accordingly, Telcordia would have to deposit its software and hardware code in a government-controlled escrow account.
The company?s case had seen delay because of security reasons, since the company operates in Pakistan as well. Earlier, the US national security advisor had met home minister P Chidambaram and apprised him that Telcordia?s operations in Pakistan are in the nature of providing vendor services, which are quite different from what the company plans to do in India.
Telcordia?s proposal has secured a clearance two years after the first deliberation on the proposal took place and the FIPB had rejected the case in September. However, in the meeting held last week, the proposal finally got cleared, with the home ministry putting forward the security conditions.
The country has been split into two zones for managing MNP. Syniverse Technologies India and MNP Interconnection, a joint venture between US-based Telcordia Technologies and Deepak Talwar Consultants, would act as the clearing houses in the respective zones to manage porting activities.
The home ministry had attached a rider that none of the staff of the US-based telecom firm who have worked in Pakistan at any point of time, can be employed in Indian operations. It had also said that the CEO of the Indian arm, a 74:26 JV between Telcordia Technologies and Deepak Talwar Consultants, will have to be an Indian. Indian regulations do not allow more than 74% foreign holdings in any firm that offers communications and related services.