The Telecom Commission has asked the Telecom Regulatory Authority of India (TRAI), to review its recommendations on mergers and acquisitions, particularly those pertaining to the total amount of spectrum that can be held by the merged entity.
The Commission has asked TRAI to explain why it has permitted a merged entity to hold maximum spectrum of 14.4 Mhz, after suggesting a cap of 10 Mhz for stand-alone operators.
TRAI has also been asked to determine the maximum amount of spectrum the merged entities can retain, if holding both GSM and CDMA spectrum.
The Commission has also asked the regulator to justify the imposition of a spectrum transfer charge of 5 per cent of the difference between the transaction value and the amount the operators paid for the spectrum. It has also sought clarification on why TRAI has suggested a five-year ban on diluting equity stake, when the recommendations were aimed at enabling mergers and acquisitions.
The Commission has also agreed to TRAI’s views on providing an exit route to companies that do not want to continue operating in the telecom space.
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