AT&T set to come back into ILD services

09 August 2006

The Department of Telecommunications is in the final stages of giving its approval to AT&T's application for a long distance licence. AT&T has formed a joint venture company with Mahindras AT&T Global Services, where the US telecom major holds 74- per cent stake.

This is the second time AT&T is entering the Indian telecom sector.

AT&T's request had run into trouble when the DoT received complaints that the company's sister concern, AT&T Communications, was offering services without proper licences and was thus evading various taxes payable.

However, a committee, set up by the DoT to look into new applications for fresh licences, has observed that as per the existing laws, the government could not hold back grant of new licences if the applicant or its sister concerns were being examined for any violations. The committee has recommended that the two issues be treated as separate and that AT&T's application be shown the green signal. The formal approval is likely to come this week. The foray in the long distance telephony segment signals a comeback for AT&T in the Indian telecom services market.

AT&T Mobile was earlier a strategic investor in Idea Cellular along with the Tatas and Birlas. AT&T is also on BSNL's list of preferred long distance carriers.