TRAI to float consultation paper on M&A norms

Telecom regulator TRAI today said it will float a consultation paper on merger and acquisitions in the sector by the next month, a move that could unleash the second wave of consolidation in the sector.     

"Our target is to float a consultation paper by November on mergers and acquisitions," TRAI Member R N Prabhakar told reporters on the sidelines of a conference here.     

The paper will deal on issues related to spectrum allocation and pricing, he added.     

TRAI is considering changes in the M&A norms in the telecom sector that could facilitate consolidation in this competitive sector.     

The consultation paper would also deal on the issues whether telcos be allowed to trade in the wireless spectrum and buy each other out.      Spectrum trading is not allowed in the country at present.     

Moreover, there is a three-year lock-in clause that prevents promoters of new telcos from selling stake and exiting a venture.     

The consultation paper will take a relook at that clause as well.