MUMBAI: Foreign telecom companies may look at buying out minority stakeholders in the world's second most populous nation as India eliminates foreign direct investment caps in telecommunications. MNC players will be able to own all of a telco with the ceiling being raised to 100% from 74%.
Tuesday's announcement will see billionaire industrialist Ajay Piramal exiting Vodafone, Sudhir Valia, better known as brother-in-law of Dilip Shangvi, promoter of Sun Pharma, getting out of Telenor and Apollo Hospital heiress, Sangita Reddy, disconnecting from Aircel. India's largest business house, the Tata Group, may also reduce its interests in Tata Teleservices, which is a joint venture with Japan's largest telecom operator NTT Docomo.
"The complete liberalization of the telecommunications sector will trigger consolidation among existing foreign telecom operators, who will now move to take complete control of their Indian operations," said Jaideep Ghosh, partner-telecom practice at consulting firm KPMG.
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