SEAnews SEA Research, BLK 758 Yishun Street 72 #09-444 Singapore 760758
India Front Line Report
SEAnews Issue:monthly
2014-03-07 ArtNo.44875
◆Telecom M&A guidelines: Tweaked market share definition to hit big telcos
【New Delhi】Telecom companies exploring mergers and acquisitions (M&As) will have to keep the market share of merged entities below 50 per cent in all circles, both in terms of subscriber base and adjusted gross revenue (AGR), say sources.
 The Department of Telecommunications (DoT) has taken a decision to consider both parameters in determining the limit on market share, according to the final draft guidelines, likely be announced soon. Earlier, the final draft of the new M&A guidelines, already cleared by an Empowered Group of Ministers on telecom, headed by Finance Minister P Chidambaram, did not arrive at clarity on the formula.
 According to a source privy to the final guidelines being decided, after a merger, companies will not be permitted more than 50 per cent market share in any circle on subscriber base as of December 31 or June 30 of each year and AGR as on March 31 of the preceding year.
 It appears, if a company exceeds 50 per cent market share in any of the country's 22 circles, it will get one year, from the date of approval of the M&A, to reduce it. If it fails to do so in this time, "suitable action will be initiated by the licensor", DoT has noted in the proposal on the final guidelines, the content of which has been examined by Business Standard.
【News source】

Telecom M&A guidelines: Tweaked market share definition to hit big telcos

Your Comments

Special sale for Ad Space

Free download of "The Origin of Christianity"

Readers' Voice


[Your Comments / Unsubscribe]/[您的意见/退订]/[ご意見/配信停止]
Please do not directly reply to the e-mail address which is used for delivering the newsletter.
SEAnews 掲載記事の無断転載を禁じます。すべての内容は日本の著作権法並びに国際条約により保護されています。
Copyright 2003 SEAnews® All rights reserved. No reproduction or republication without written permission.