Telecom M&A guidelines in a week: Telecom Secretary

The long-awaited merger and acquisition guidelines for the telecom sector are likely to be released in a week, a senior government official said today.
"M&A guidelines shall be published in a week. We have received legal opinion today which is being examined," Telecom Secretary M F Farooqui told reporters here.
The Empowered Group of Ministers (EGoM) has already approved the M&A guidelines but it may need a Cabinet approval if legal opinion finds that the consolidation activity amounts to sale of equity.
As per the guidelines approved by EGoM, market share of a merged entity should not exceed 50 per cent of the subscriber base.

Telecom companies, which procured spectrum through auction, would not have to pay additional money to government for airwaves. However, if a company acquires a telecom operator that was allocated spectrum at old rate of Rs 1,658 crore, then it will need to pay the difference between market rate and old rate to the government.