Final M&A guidelines for telecom in a week: DoT secy

The Department of Telecommunications (DoT) is likely to notify the final guidelines for mergers and acquisitions (M&A) in telecom sector within the next week.

While the Empowered Group of Ministers (EGoM) had finalised the M&A norms for telecom a few months back, the DoT did not notify the final guidelines as it required legal vetting.

“M&A guidelines shall be published in a week. We have received legal opinion today which is being examined,” M F Farooqui, secretary, DoT, said here today.

EGoM has fixed the limit of market share at 50% in each circle for the merged entities. While operators with spectrum procured through auction, would not have to pay additional money to government for airwaves, but if a company acquires a telecom operator that was allocated spectrum at old rate of Rs 1,658 crore it will need to pay the difference between market rate and old rate to the government.