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

BSNL Launches Bharat Air Fibre Service With Triple Play Feature

Bharat Sanchar Nigam Limited (BSNL) has been on a roll after receiving its relief package from the government. The state-led...

DoT to Not Take Any Action Against Telcos as They Miss AGR Dues Deadline

The telecom service operators will not face any coercive action from the Department of Telecommunication (DoT) as per a new...

Xiaomi Redmi K20 and K20 Pro Receive Permanent Price Cut in India: Check New Prices Here

Xiaomi has permanently reduced the prices of Redmi K20 series in India. The new prices start at Rs 19,999 for...