News: New M&A norms: Consolidation in telecom unlikely

Strategic HR

New M&A norms: Consolidation in telecom unlikely

According to a Mint report, analysts believe that the government’s new policy on mergers and acquisitions (M&A) for the telecom sector, which is expected to be announced this month, is unlikely to present any significant opportunities for India’s top mobile phone operators as the rules are too restrictive. The report says that according to the proposed rules a merged entity cannot have a market share of more than 35% in terms of both subscribers as well as adjusted gross revenue.

According to a Mint report, analysts believe that the government’s new policy on mergers and acquisitions (M&A) for the telecom sector, which is expected to be announced this month, is unlikely to present any significant opportunities for India’s top mobile phone operators as the rules are too restrictive. The report says that according to the proposed rules a merged entity cannot have a market share of more than 35% in terms of both subscribers as well as adjusted gross revenue.

The report adds that the telecom department has, removed an earlier clause that said a merged entity with a marketshare of between 35% and 60% would be approved on a case-to-case basis by the Telecom Regulatory Authority of India.

Communications minister Kapil Sibal had said last month that the new norms would be announced by 15 October.

Read the complete report here

Read full story

Topics: Strategic HR, #MergersAndAcquisitions, #National

Did you find this story helpful?

Author

QUICK POLL

What is your top focus area for reinventing work in the hybrid world of work?

How can we prepare for a challenging 2023?

READ our latest issue for tips and suggestions.