TRAI RECOMMEND 3YEAR LOCK-IN FOR NEW OPERTAOR

By March 13th, 2009 AT 1:54 PM

Amidst the controversial sale of stake by two new telecom operators, Swan and Unitech at a huge premium,TRAI has now recommended a 3 year lock-in period for stake sale by companies,which have recently got licences, in a bid to prevent them from making windfall gains overnight.

Last year, DoT had suggested that existing telecom licensing norms be amended and a 3 to 5 year lock-in be imposed on the sale of promoters  equity in new entrants, including Swan, Shyam, Unitech, Loop Telecom, STel and Datacom, which were given licenses in early 2008.The DoT had referred this proposal to TRAI.

While dealing with the issues, the main objective of the Authority has been to recommend measures to block the unearned gains arising from transaction in the stakes of promoters, particularly when the value of spectrum is not getting correctly reflected in the entry fee.

There should be a lock-in of the equity share capital of promoters, whose net-worth has been taken into consideration for determining the eligibility for grant of UAS(Unified access service) license, for a period of three years from the effective date of license.

Leave a Reply

avatar
Photo and Image Files
 
 
 

Recent Posts

Google Inbox Officially Shutting Down on April 2

Google is shutting down on April 2 its email app “Inbox” that gave users options like advanced filtering, message snoozing...

Trai Channel Selector App Will Let You Optimise Lowest Monthly Bill for Your DTH or Cable Subscription

While a lot of DTH and cable TV subscribers have made the switch to the new Trai based channel packs,...

Google Stadia Game Streaming Platform Introduced, Will Launch Later in 2019

Google launched Stadia, the company’s own gaming streaming platform at the Game Developers Conference (GDC) which was held in San...