The Indian IT & Communications Minister Ravi Shankar Prasad said that the government of India will revisit the merger and acquisition guidelines for the telecom sector, if need arises at the India Economic Summit in New Delhi.
“I have already constituted a committee headed by Telecom Secretary to revisit guidelines…I have instructed the Secretary to look into issues of stakeholders and if there is a need to revisit merger and acquisition guidelines, do that,” said Prasad at event, has organized by World Economic Forum.
The committee, headed by Telecom Secretary Rakesh Garg, will also look into issues concerning the telecom sector, like the ease of doing business. The committee’s first meeting took place today wherein industry associations raised their concerns. Telecom operators have long been demanding changes in the M&A rules, terming them difficult.
In early of this year, Vodafone said that we have interested in acquiring assets of other telecom companies in India, including spectrum and fibre, to get pan- India footprint for data services.
In addition, TRAI Chairman had said that the industry is bleeding. There are 12 operators here. Globally, each country has three to four telecom service providers. Some places it is just two. Despite notifying, no consolidation has happened.