Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ACCOUNTING STANDARD :: empanelment :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT Audit :: VAT RATES
« Mergers and Acquisitions »
 The Role Of Brand In Petroleum Mergers And Acquisitions
 Mergers and Acquisitions: What Happens After the Announcement?
 Agency mergers and acquisitions continue to be strong for first-half 2016
 The Intricacies Of Financial And Legal Relationships In M&A
 3 integration considerations for Mergers & Acquisitions
 Mergers and acquisitions take centre-stage as funding for start-ups dries up
 Mergers and Acquisitions reach highest quarterly value in India
 18 digital health exits (mergers, acquisitions, and IPOs) in Q3 2016
 Number of mergers and acquisitions rise in 2016, Experian finds
 Indian startups are more willing than ever to acquire and be acquired
 India’s mergers and acquisitions reaches highest quarterly value in Q3 2016: Report

Telecom industry urges TRAI to revise mergers and acquisitions policy
July, 07th 2015

The telecom industry wants the regulator to take steps to revise the mergers and acquisitions policy to facilitate consolidation in an intensely competitive sector and help cut costs, improve services and reduce debt.

"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," Rajan S Mathews, director general of the Cellular Operators Association of India, told ET. The COAI represents top companies such as Bharti Airtel, Idea Cellular and Vodafone India.

The GSM Association, the world's top telecom body, also voiced similar concern, saying the industry is looking for liberalised norms that could create a suitable environment for consolidation.

According to companies, consolidation will lead to efficiencies of scale and allow operators to reduce costs and ease decisions for potential investors as well as improve service offerings. These would eventually lower the industry's debt, which is estimated at Rs. 2.5 lakh crore. Competition has hurt the financials of operators, leaving them with huge debt, the COAI executive added.

Telecom industry urges TRAI to revise mergers and acquisitions policy

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% market share limit and 25% spectrum cap will discourage the larger operators from merging with each other, Mathews said.

Current guidelines practically rule out the big three — Bharti Airtel, Vodafone India and Idea Cellular — from striking a deal among themselves. The clause, however, is seen to be allowing smaller operators to combine.

"Due to the absence of industryfriendly policy, no M&A activity took place during the last 10 years," Mathews said. Recent availability of nationwide mobile number portability has added to the competition in voice and data segments, which have resulted in the average realised rate per minute in India falling below base tariffs, the telecom lobby group said.

With an average revenue per user of Rs. 118 per subscriber per month at the end of December 2014, as per TRAI data, the Indian telecom sector rakes in onefourth of the worldwide average, which is the lowest globally. Mathews said five to six companies operating in each circle would be an ideal market structure and would help service providers streamline their offerings. "On an average, there are three to four players in global markets, while several telcos operating within each telecom circle make spectrum fragmented that eventually results in poor quality of services," GSMA India head Sandeep Karanwal said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Wholesale Silver Jewelry

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions