M&A, spectrum issue: Telecom body to meet again

NEW DELHI, INDIA: The telecom commission will meet again on December 1 to discuss the proposals of the Telecom Regulatory Authority of India (TRAI) on mergers and acquisitions (M&A) in the sector and pricing of second generation (2G) spectrum, a senior official said on Monday.

"The issues discussed include M&A, spectrum pricing and priority of allocation of spectrum. No final decision has been taken. The commission will meet again on December 1 to consider the proposals," Telecom Secretary R. Chandrashekhar told reporters after a meeting of the commission with the telecom ministry on Monday.

Earlier this month, TRAI had recommended easing mergers for companies having market shares of up to 35 per cent, and said that mergers should not be allowed if the resulting company has over 60 per cent market share.

It had also proposed that megahertz of additional spectrum beyond 6.2 MHz held by operators should have one-time cost of Rs. 4,571.87 crore applicable across the country.

The telecom department had asked the telecom regulator to make a fresh set of recommendations on M&As, following Communications Minister Kapil Sibal's recent statement that the telecom sector is highly fragmented and requires consolidation.

TRAI had last made recommendations on mergers and acquisitions in May 2010.