In a move expected to adversely impact the telecom tower space, the Telecom Regulatory Authority of India (TRAI) has suggested lowering the foreign direct investments cap on telecom tower companies to 74 per cent. This is aimed at bringing the infrastructure segment at par with other services, for which a 74 per cent cap is applicable.
As expected, the telecom infrastructure space has protested strongly against the regulator?s recommendation. For example, the Tower and Infrastructure Providers Association has said that the companies currently operating in this space had entered India under a 100 per cent foreign holding regime, which cannot be changed.
It also said that the smaller companies providing infrastructure services should be given a choice whether to migrate to the new regime or not.
TRAI wants the new cap to be part of the National Telecom Policy 2012.
