UK-based telecom major, British Telecom (BT) will soon be applying for National and International Long Distance licences under the new 74% FDI dispensation.
While BT's Indian partners' name remains a mystery, sources suggest they are likely to partner with an Indian corporate whose core business is not telecommunications.
BT will become the second company after AT&T to apply for NLD/ILD licences with an objective of serving its enterprise business. The company is holding the date of filing as well as the name of its partner, close to its chest.
BT's spokesperson said the company was on the lookout for an Indian partner, but industry analysts confirm the search is over and DoT sources confirm that licence applications are imminent.
BT's senior management have been regular visitors to India and indicated intent to increase the telecom business multifold. This was strengthened by the appointment of CS Rao from Lucent India as the managing director of BT India in October.
In this role, CS Rao will be responsible for managing all of BT's activities in India. However, BT's ability to become operational rests largely on the resolution of FDI restrictions.
If government succeeds in removing entry barriers by January, the next scheduled month for a decision, as many as three to four global operators are likely to become fully active in VPN enterprise market space within first half of 2007. This is a re-entry for BT into India.
Its first major investments were in wireless and mobile telephony with Bharti in the late 1990s which BT exited after a global restructuring of its wireless business.