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India may move to single telecom licensing

India is considering moving to a single telecoms licensing system in response to growing technological convergence and to overcome regulatory problems, Tapan Sikdar, minister of state for communications, said on Wednesday.

India offers different licences for basic and mobile phone services but recently allowed fixed-line phone firms to offer limited mobility services.

This is being opposed by mobile phone firms and has lead to a regulatory deadlock.

Cellular operators say the limited mobility based on Wireless in local loop technology would be cheaper because fixed-line phone firms would use long-distance revenue to subsidise it.

This has raised demands that the government offer a single licence to cover all telecom services.

"We're seriously thinking about a single licensing system and ultimately it will be allowed," Sikdar told a seminar on Internet telephony in New Delhi.

"But we have also committed to provide a level playing field so we have to honour that too," he added.

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