DoT may not oppose Axiata raising stake in Idea

The Department of Telecom (DoT) may not oppose Malaysia based-Axiata Group's proposal to raise its stake in Idea Cellular by 1% to nearly 21%.

Axiata, which  holds 19.98% stake in Idea Cellular, had sought permission to hike stake in the Indian operator by acquiring shares in open market transactions but the home ministry opposed to the proposal on security grounds.
The home ministry had opined that Axiata's subsidiary inPakistan routed international calls from its E-connect hub in Karachi which might be a security concern, sources said. It had asked DoT to give its comments on the likely security vulnerability with respect to Axiata's proposal to increase its stake in Idea Cellular and if there were possible remedial measures on routing on traffic through its E-connect hub.
DoT in its comments said that international long distance operators are free to route their traffic through any international carrier based on their techno-economic considerations. "Since Axiata Group already holds 19.98% equity in Idea Cellular, the security vulnerability apprehended by home ministry exists even today. Hence, no additional vulnerability is likely to be added by this proposal," sources in DoT said.