Telecom Commission agrees to make merger and acquisition rules less stringent

The Telecom Commission has accepted the Telecom Regulatory Authority of India?s (TRAI) recommendation to make the rules pertaining to mergers and acquisitions less stringent.

The Commission has said that all mergers and acquisitions will be cleared automatically, if the combined market share of the new entity is less than 35 per cent and spectrum holding is less than 25 per cent.

In cases where the market cap is more than 35 per cent but less than 60 per cent, TRAI will examine the case to avoid monopoly in the market.

Prior to this, TRAI had recommended that mergers and acquisitions be allowed in the industry if the combined market share of the new entity is less than 60 per cent. This is expected to facilitate consolidation in the industry.