The Comptroller and Auditor General of India (CAG) has told the department of telecom (DoT) that allowing new operators to merge with incumbent mobile companies will result in the combined entity holding more airwaves than permitted under current rules. Meanwhile, CAG is already investigating alleged the contentious allocation of 2G spectrum and licences to new companies in 2008.
CAG has also warned against relaxing M&A norms to offer exit options to new telecom companies and added that the telecom department’s move to grant mobile permits to new entrants in 2008 was ‘done without proper verification of their eligibility and other credentials’ and there is no merit in giving new players a bailout option without fulfilling its roll out obligation.
