Telecom Commission To Meet On Feb 17, Merger and acquisition Norms to be Soon Simpler for operators

By February 7th, 2014 AT 3:21 AM

mobile-towerInter ministerial panel Telecom Commission will be meeting on February 17 in order to discuss mergers and acquisitions for the telecom sector. The final guidelines for the M&A policy will be discussed at the meeting. The same is the sector’s first ever M&A policy and has been pending for a long time.

The Empowered Group of Ministers has recently approved M&A guidelines but it has looked for legitimate assessment concerning if the combining activity will result in sale of equity, thus  defiling lock-in period guideline of telecom licence. According to the guidelines proposed the market share of the merged entity should not cross 50 percent.

Telecom operators, which secured spectrum through the auctions held, might not need to pay extra cash to government for spectrum. On the other hand, if an organization procures a telecom operator that was allotted range at old rate of Rs. 1,658 crore, then it will pay the contrast between business rate and old rate to the authorities.

This new guidelines will be making easier for operators for merger and acquisitions, once this comes into effect which all operators you think will be going in the way for mergers? Does it means lesser competition among operators and no tariff wars what you think ?

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rachit guptaYogesh SarvadeYogesh Sarvade Recent comment authors
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rachit gupta
rachit gupta

I would like to mention that hiking the tariffs to some extent is possible but after a point tariff hike will lead to considerable decreaae in minutes of usage which will lead to fall in revenues.
Also a lot of options are available for free voice calling nowadays

Yogesh Sarvade
Yogesh Sarvade

So it will be easy to vodafone to buy tata tele.Today voda got nod from govt to invest 1.6 Bn, thus it will be 100% stake of vodafone only.As per 3rd quarter results with net income of 6.4bn rs tata tele has 1.6bn loss , also tata tele has 220bn debt.As loop not in auctions so it will be buy out by airtel. Tata n reliance both want to stop cdma. So Mts will remain as pure cdma operator. Videocon also not start services in few circles n not participated in auction. Possible that R jio will buy videocon. Aircel… Read more »

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