The Group of Ministers on Telecom (GoM), which met in Delhi this month, has decided to make three major recommendations to the cabinet – to hike foreign investment limit in telecom services companies from 49% to 74%, to allow intra-circle merger of service providers and to replace existing licences with nationwide unified licences.

Foreign direct investment ceiling will, however, remain at 49% with the incremental foreign investment being permitted via foreign institutional investors, and the management control will lie with the Indians. Intra-circle merger of basic and cellular operators, it is recommended, be allowed, provided there are more than three operators in a circle. Modalities of implementing unified licences are to be discussed in the GoM’s next meeting, which is to be held soon. The GoM, headed by finance minister Jaswant Singh, comprises communications and IT minister Arun Shourie, defence minister George Fernandes, foreign minister Yashwant Sinha, law minister Arun Jaitley and I&B minister Ravi Shankar Prasad.