Deutsche Telekom, U.S. Firms Scrap With India Over Scuttled Satellite Deal

Deutsche Telekom AG and two U.S. investment firms are challenging the Indian government over a canceled contract to supply broadband service, another hitch for foreign companies conducting business in the country.

The dispute concerns an agreement with an arm of the government's space agency to use satellite technology to develop an Internet broadband network. New Delhi canceled the contract in 2011, saying it might have shortchanged the federal treasury and that one government official had too much influence over the approval process. Now U.S. investment firms Columbia Capital LLC and Telcom Ventures LLC are seeking more than $1.6 billion in arbitration before a United Nations panel.