Private telecom players like Reliance Communications, Airtel and VSNL can look forward to getting network connection with Pakistan, with the optical fibre cable (OFC) link between India and its neighbouring country set to be functional by next year.
After the link is established, it will also bring down tariffs for international long-distance (ILD) calls from India to Pakistan, which at present are among the highest due to lack of direct connectivity.
Data and voice traffic between India and Pakistan arecurrently routed through landing stations situated in a third country, which drives up the cost of service. After the link is established, this would be the first time that Indian telecom operators would get access to the Pakistani market.
"I am sure in 2009 the optical fibre link between India and Pakistan would get fully functional. Pakistan has given the green signal to Reliance Communications, Airtel and VSNL," Minister of State for Commerce and Power Jairam Ramesh said at a conference on India-Pakistan Economic Relations at Ficci.
Pakistan telecom companies have been keen to set up link with India to bring down leased line costs of the Internet and data. Earlier, the Pakistani government had not allowed VSNL to bid for taking an ILD licence.
Speaking on the issue of opening bank branches in both the countries, Ramesh said, "I am somewhat frustrated at the slow pace of progress on the issue. Applications have yet to be made, but I hope that by 2009 we will see two Indian banks functioning in Pakistan and vice-versa."