New telecom operators can't sell stakes for three years: Government

Wednesday, 26 November 2008, 03:44 Hrs   |    1 Comments
Printer Print Email Email
New Delhi: Mergers and acquisitions between new telecom operators will be allowed only if they have completed three years of operations after being issued licenses, Telecom Minister A. Raja said here Tuesday.

Additionally, the market share of the merged entity in the relevant telecom region should not be more than 40 percent either in terms of subscribers separately for wireless and wired line phones, or in terms of adjusted gross revenue (AGR), he said.

"We have referred the three-year lock-in period to TRAI (Telecom Regulatory Authority of India) and the ministry of company affairs," Raja said during the annual Economic Editors' Conference.

Telecom Secretary Siddharth Behura said the ministry was considering easing norms for rollout of services.

Under the existing rules, telecom operators are required to roll out 10 percent of services within a year and are liable to pay a penalty if this obligation is not met.

However, if the new norms are introduced, opertors will have three years to roll out 50 percent of services.
Source: IANS
SPOTLIGHT
IBM announces programme
n a bid to recognise the contribution of developers in the open source community, Information ..
Wipro opens third industrial
IT major Wipro Ltd on Thursday opened its centre of excellence for Industrial Internet of Things (..
Facebook denies cyber attack
Facebook ruled out a cyber attack on its products Whatsapp, Instagram and Messenger, which suf..
Google's Gboard gets offline
Google is adding an Artificially Intelligent (AI) offline dictation feature on its Gboard keyb..