India opened the way for foreign participation in its basic telephone networks by allowing overseas companies to hold up to 49% of in joint venture companies operating telephone networks: the policy gave no entry guidelines on foreign equity participation or on the revenue-sharing formulae with the Department of Telecommunications; only one private local phone operator will be allowed in each region and it will have to compete with the state phone company; licences granted will be for an initial 15 years; private firms will be kept out of long-distance networks for at least five years, after which the situation will be reviewed.
