In a move to discourage non-serious players from participating in the 3G auction, DoT has proposed that the new entities formed through mergers and acquisitions (M&As) will have to pay the gov ernment 25 per cent of their total valuation.

In a move to discourage non-serious players from participating in the 3G auction, DoT has proposed that the new entities formed through mergers and acquisitions (M&As) will have to pay the government 25 per cent of their total valuation. According to a draft note to formalise guidelines for 3G services, the levy would fall under spectrum usage charges. To discourage spectrum trading, the government had earlier proposed that telecom firms which were awarded 3G spectrum would not be allowed to undertake M&As for the first five years. The new 25 per cent payment clause would come into effect after the five-year period.