Indian Communications Minister to Meet with Telecom Firms to End Lawsuits

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Kapil Sibal, India's Communications Minister, said that he has called to meet mobile phone company owners. This is to resolve lawsuits that have been filed after an 85% decrease in overseas investment.

Sibal said in an interview today by Bloomberg TV India that he will meet the heads of wireless phone firms in the next two weeks.

The Indian courts are hearing numerous lawsuits from the Department of Telecommunications. Cases range from purchasing mobile-airwave s beyond the legal limit and wrongful licenses termination.

From the previous twelve months, the foreign direct investment in Indian has shrunk to US$304 million in March from US$2 billion, according to a government data. This was after the Supreme Court cancelled 122 licenses in February 2012.

Sibal added that litigations are to be made as they need to address the problem constructively.

The cancellation of said licenses due to graft and corruption by the Supreme Court led to the exit of companies including Emirates Telecommunications Corp., Bahrain Telecommunications Co. and Idea Cellular Ltd.

Russia's AFK Sistema, Tata Teleservices Maharashtra Ltd. and Norway's Telenor ASA were also among said telecommunications company that exited the country.

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