The following Press Release has been issued by Forum of BSNL Unions/Associations against the decision of the Telecom Commission to introduce 100% FDI in Telecom:

FORUM OF  BSNL UNIONS / ASSOCIATIONS

Press Release                                                                                                                                   3^rd July 2013

BSNL Unions Oppose 100% FDI in Telecom

The decision of the Telecom Commission to increase the FDI in telecom sector from the present 74 % to 100% is totally opposed by the BSNL workers. This decision of the government not only raises serious security concerns, but also will result in the Indian private telecom companies being taken over by the foreign companies and adversely affect the growth of BSNL and MTNL in the fierce competitive atmosphere.

Telecom Sector has always been considered as the second line of defence. Whether in the First War of Independence or in the II World War or in any major wars afterwards, telecommunications always played an important role.  The communications system in the country cannot be under the control of foreign companies, whose interests are based only on profit. Any nation has to be extra careful about its defences, which also require control on the telecommunications systems. In this connection, it is to be pointed out that the unverified mobile connections found out in the hands of the terrorists, belonged to companies with Foreign Direct Investment. If the full control is with the foreign companies who do not have any concern for the security of India, what will happen at times of crises need not be elaborated.

Already 100% FDI is allowed in telecom equipment manufacturing for the last two decades. For the first time, 49% FDI was introduced in telecom services in the 1990s. In 2005, it was increased to 74%. Now the full circle is reaching with 100% FDI, if the central government approves of the same.

It is interesting that as usual, this decision is taken just before the scheduled tours of the Finance Minister and Communications Minister to US, in the second week of July. It is to be noted that the US as also the telecom MNCs have been putting much pressure on the government of India to increase the FDI in telecom services, which is one of fast growing sectors in the country.

The Forum of BSNL Unions / Associations strongly oppose the decision to increase the FDI to 100% in Telecom Sector and demand the government to desist from this dangerous move.

V.A.N.Namboodiri

Convener, Forum

Mob: 09868231431