COAI requests TRAI to review merger and acquisition policy

By November 4th, 2014 AT 2:23 PM

GSM industry body, Cellular Operators Association of India (COAI) has written a letter to the Telecom Regulatory Authority of India (TRAI) Chairman Rahul Khullar to review merger and acquisition guidelines which were (M&A), notified early this year.

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“To facilitate consolidation in the sector, it is important that the M&A guidelines be reviewed and modified to promote orderly growth of the sector,” COAI Director General Rajan S Mathews said in a letter to TRAI Chairman Rahul Khullar.

“We request authority to initiate a suo moto consultation on M&A policy so as to enable a comprehensive review of the guidelines with participation of all the stakeholders,” Mathews said in a letter.

On September 23, TRAI Chairman had said that the industry is bleeding. There are 12 operators here. Globally, each country has three to four telecom service providers. In some countries it is just two. Despite the modifications, no consolidation has happened yet.

He also referred to how the intense competition has led to smaller operators running up thousands of crores of debt, a deterrent for any potential suitors.

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

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TRAI Wants To Reduce Bottlenecks; Floats Paper on Ease of Doing BusinessAravind Ganesh VkrishPD Recent comment authors
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[…] regulator is likely to review the merger and acquisition policy as part of the process overhaul in the midst of consolidation drive, which has picked pace lately […]

Aravind Ganesh V
Aravind Ganesh V

CoAI is more of a mouthpiece of AVoId operators.. These operators are in look of more inexpensive ways of merger which is why COAI has made this representation..

Why they are shedding crocodile tears for smaller operators when most of them are actually performing better & offering cheaper rates than these 3 operators.. The reason why no big M&As haven’t taken place till now is that bigger operators are not ready to shell out any premium. Well Airtel has made a start by acquiring loop in Mumbai.

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