Govt allows resale of licence for international tele-communication

New Delhi, Sep 24 (UNI) An Indian company holding licence for providing international tele-communication can resell it to a global player, government said today.

Department of Telecommunication (DoT) today said it has allowed resale of international private leased circuits (IPLC) with immediate effect in order to promote competition and affordability.

"Reseller shall provide end-to-end IPLC between India and country of destination for any capacity denomination," DoT said in a notification.

Reseller shall take the IPLC from International Long Distance (ILD) service providers licenced under Section 4 of the India Telegraph Act, 1885, it added.

It said resellers shall be permitted to enter into an arrangement for leased line with access providers, national long distance service providers and international long distance service providers for accessing IPLC to end customers.

Company seeking to resell IPLC must be Indian and its net worth and paid-up capital should be at least Rs 2.5 crore, DoT said, adding total foreign equity in the paid-up capital of the company must not exceed 74 per cent.

DoT has fixed Rs one crore as the entry fee, while licence fee will be 6 per cent of adjusted gross revenue (AGR) or Rs 5 lakh, which ever is higher, the notification said, adding Rs one crore will be initial financial bank guarantee.

Lawful interception and monitoring of resold circuits shall take place at the gateway/monitoring system of the ILD operator from whom the IPLC has been taken by the reseller, the notification added.

UNI SAA SG HT1918