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SingTel under Indian regulatory scanner
25 January 2010
The Indian government is claiming that SingTel was offering international long distance services without a licence
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India
SingTel
Singapore Telecommunications
Bharti Airtel
Tata
VSNL
Comment: The Indian government seems to be taking backward steps in its attempts to restrict competition in international communications in a competitive market. Indian operators — such as Tata, which now owns the former government-owned international operator VSNL — have done well through liberalisation globally. It would be a mistake to reduce liberalisation of the market in India.
India’s Department of Telecom may ask two of the country’s largest operators, Bharti Airtel and Tata Communications, to end their contracts with Singapore Telecommunications. SingTel has been allegedly offering international long distance services in the country, without a licence.
The government department is saying that Bharti Airtel and VSNL were illegally appointed as SingTel’s agents to deal with Indian customers, including billing for the services provided.
In its response, SingTel has denied providing any telecom services in India. The company is the parent company of SingTel Global (India), which has an ILD licence in India.
SingTel, which owns more than 32% of Bharti Airtel, may also draw a penalty for violating laws and offering services in India without a proper licence.
The department has previously imposed fines on other foreign telcos, such as AT&T, BT, France Telecom and Verizon, for illegally offering services before obtaining licences to operate in India. GTB