Asia Express - East Asian ICT
Mobile Communications - India Sets Healthy Investment Environment
November 19, 2004
To further attract major industry players, the Indian government said it would cancel a levy paid by private operators to BSNL (Bharat Sanchar Nigam) in approximately two and a half years. Operators such as Bharti, Reliance Infocomm, and Hutchison Whampoa are expected to benefit from this incentive.


Currently, private operators pay between INR0.3 and INR4.2 to BSNL for each call made from its network. The abolition of the levy is expected to drive down tariffs and give rise to a healthy investment environment for foreign players.


Meanwhile, the Indian government also announced that Ericsson and LG would be involved in production of mobile phones and switching equipment in India, joining the ranks of other major vendors. Companies such Alcatel, Elcoteq, and Lucent are also showing interest.