AT&T Global Network Services India Private Limited (AT&T India), a joint venture which is AT&T majority-owned, has become the first foreign telecommunications operator in India to be granted National Long Distance/International Long Distance operating licences. AT&T says the award was made possible by the Indian Government’s decision last year to raise the cap on Foreign Direct Investment (FDI) in telecommunications enterprises to 74%, up from 49% (click). AT&T owns 74% of AT&T India while the remaining 26% belongs to Mahindra Telecommunications Investment Private Limited.

AT&T presently supports its global customer requirements in India through a cooperation agreement with Videsh Sanchar Nigam Limited (VSNL). Once AT&T India becomes operational later this year, AT&T India will directly serve corporate customers. The company is planning to provide Virtual Private Network (VPN) services by the end of 2006, and says it will also introduce several enhancements to its portfolio, such as network- and premises-based firewalls, business continuity and disaster recovery services.

Less fortunate in the liberalising Indian telecoms market, if local and international newspaper reports are to be believed, is mobile vendor Motorola. Accounts currently circulating have the US company joining Chinese vendor ZTE in an early bath in the bidding to supply government-owned Bharat Sanchar Nigam (BSNL) with 45mn lines equivalent of cellular equipment. Reports have Motorola challenging the BSNL move in the Indian courts.
John Williamson