Telecom Industry urges TRAI to revise M&A policy: Reports
07/07/2015 11:54

The telecom industry has urged TRAI to take various initiatives to revise the mergers and acquisitions policy to facilitate consolidation in an intensely competitive sector and help cut costs, improve services and reduce debt, certain sections of media reported.

Commenting on the issue, Cellular Operators Association of India Director General Rajan S Mathews told the media, "The industry strongly feels that Telecom Regulatory Authority of India (Trai) should initiate a suo motu consultation on M&A (mergers and acquisition) policy with all stakeholders to enable a comprehensive review of the current guidelines."

“The industry says the current guidelines are unlikely to encourage consolidation because of spectrum pricing norms. If an acquired company holds spectrum that was allocated by the government, the airwaves would have to be valued at market rates and the difference paid. Other curbs such as lock-in period, 50 per cent market share limit and 25 per spectrum cap will discourage the larger operators from merging with each other,” he added.

The COAI represents top companies such as Bharti Airtel, Idea Cellular and Vodafone India.