Verizon, Videocon JV awaits security clearance

NEW DELHI: US-based telecom firm Verizon's plan to float a joint venture with Videocon Industries for offering Internet services to enterprise customers may take time as it is yet to get the mandatory security clearance.

Home Ministry is understood to have asked the Department of Telecom (DoT) not to allow Verizon to start Internet Protocol-Virtual Private Network (IP-VPN) services without appropriate security clearance, official sources said.

Such services allow private companies to use a secure network on Internet. Verizon plans to start IP-VPN services for enterprise customers this year. It has formed a joint venture with Videocon and has a majority stake of 74 per cent. DoT has already given a Letter of Intent to Verizon for national and international telephone services.

Sources, however, said the joint venture has not yet been given security clearance so far. They said Home Ministry has asked the DoT for factual position on the matter and and not to permit Verizon to introduce this network without the required security clearance. A Videocon spokesperson could not be contacted for comments.