The Telecom Regulatory Authority of India (Trai) has issued proposals to facilitate M&A deals in the country’s overcrowded mobile network operators market.
Under the proposed guidelines, a combined entity would be allowed to have a maximum market…
The Telecom Regulatory Authority of India (Trai) has issued proposals to facilitate M&A deals in the country’s overcrowded mobile network operators market.
Under the proposed guidelines, a combined entity would be allowed to have a maximum market share of 60%. The limit is currently set at 30%, according to local reports.
Trai would have to give regulatory approval for any merger that would create an entity with a market share of between 35% and 60%, according to the proposal.
The regulator also said that spectrum sharing should be allowed.
These recommendations, which form part of a broader document on spectrum management and licensing framework, are in response to the Department of Telecommunications’ views on these matters earlier this year.
The measures reportedly require government approval before implementation.
The Trai guidelines come about a month after telecom minister Kapil Sibal unveiled the main aspects of the New Telecom Policy 2011, which aims to bring more transparency and certainty in terms of licences, spectrum sharing and M&A.
Currently, telcos are not allowed to hold more than 10% of another operator in the same circle.
As part of the new policy, Sibal had voiced its intention to ultimately bring the number of operators per service area down to six, from up to 12 at the moment.
