India's Department of Telecommunications is all set to grant a letter of intent for national long distance and international long distance license to AT&T Global Network Services India, despite advice to the contrary by ministry officials.
The government is currently investigating global telecom major AT&T for illegally operating services without a license and causing huge revenue loss to the exchequer.
Earlier, the agency had found four telecom companies namely AT&T Communications, Equant, BT (India) and MCI Worldcom selling and providing data and other telecom services for several years without any license in gross violation of norms in the telecom sector.
Some of these companies were invoicing Indian companies from their overseas offices and avoided applicable taxes such as service tax and license fees.
A senior officer of the department recommended that since 'allegations are of a serious nature and therefore it is for consideration that the issue of license be withheld till such time the examination of the case is completed and charge determined.'