Idea, Verizon get DoT nod for NLD, ILD services

Aditya Birla group company Idea Cellular and US-based wireless operator Verizon are all set to get the Letters of Intent for long distance services following clearance of their applications by the Department of Telecom (DoT).

Official sources said the applications have been put forward for the Telecom Minister's approval. Idea is awaiting LoI for International Long Distance services while Verizon's application is for both National and International Long Distance services.

Idea has already got NLD license and an ILD license will fulfill its long distance aspirations. Verizon has conglomerate Videocon as its Indian partner.

So far, 13 companies have been issued ILD licenses. The last one to be issued this license was Spice  Communications in August this year. 19 companies have got NLD
license.

Apart from old players like Reliance Communications,  Bharti, BSNL and VSNL, the new players over the last one year  are i2i Enterprises, AT&T Global Network, Hutchison Essar (Now  Vodafone Essar), Sify Communications, Dishnet Wireless, BT Telecom India and Tulip IT Services.

The ILD and NLD markets are witnessing competition not just in voice, but also in data and IP-based services. Unlike UAS licenses which need spectrum, there is no limit on the number of ILD, NLD licenses that can be awarded, which leads  to robust competition in this segment. And the drastic reduction in license fee to just Rs 2.5 crore (Rs 25 million) is another key factor that is luring players to apply.