Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: cpt :: VAT RATES :: VAT Audit :: TDS :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: empanelment :: form 3cd :: Central Excise rule to resale the machines to a new company
 
 
« Mergers and Acquisitions »
 Deals of the day-Mergers and acquisitions Nov 14, 2017
 Largest cybersecurity M&A deals in 2017
 State Bank of India eyes profitable expansion outside home
 Deals of the day-Mergers and acquisitions Nov 6, 2017
 Large merger and acquisitions back in Indian pharma
 RBI norms may spur digital wallet mergers
 How Indian businesses are evolving M&A strategies
 Deals of the day-Mergers and acquisitions Nov 3, 2017
 Ease of doing business in India remains a major concern: Airtel’s Sunil Mittal
 Mergers and Acquisitions hit by demonetisation, GST roll out
 M&A deals in pharma sector decline in 2017, amid tough business conditions

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 2017 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