It seems that the UPA-II Government is moving towards 100% FDI in telecom sector. The auction for 2G spectrum is expected shortly consequent to the cancellation of the illegal 122 licences  by the Supreme Court. Many of the affected companies, including Telenor (Norway based company) are reported to file petition against the SC judgement and have approached the government for the refund of the spectrum charges with interest. The government is under pressure to favour the affected companies. In such a situation, the government is sure to bail out these companies as has been doing earlier.

The present move to allow fully foreign owned companies to bid for the oncoming 2G auction, in reality, will mean 100% FDI in telecom. Although the present FDI cap in telecom is 74%, in practice it is much more than that. It is not that the government is not aware of the violation of the FDI cap, but it is being silently allowed. If the fully foreign-owned companies are allowed to bid in the 2G auction, it will be 100% FDI. This needs to be strongly protested.