The Empowered Group of Ministers (EGoM) on Telecom, on Tuesday, approved the ‘mergers and acquisitions’ (M&A) guidelines, besides clearing the sale of over 400 MHz of 2G spectrum (1800 MHz band), a move that would help further growth and consolidation of the cellular phone market in the country.
At its meeting, the EGoM, headed by Union Finance Minister P. Chidambaram, also approved payment of market rates for spectrum above 4.4 MHz allotted to the acquired entity.
All these decision would now be forwarded to the Cabinet for final approval, government sources said. The EGoM also cleared the sale of 403 MHz of 2G spectrum, which is valued at about Rs.36,000 crore, as per the reserve price recommended by the Telecom Commission, the Department of Telecommunications’ highest decision-making body.
The Telecom Commission has already approved the draft M&A guidelines, which says that the market share of a merged entity should not exceed 50 per cent of the subscriber base.
The much-awaited mergers and acquisitions guidelines would pave way for consolidation of mobile market which today has 12 mobile operators.
PM to inaugurate telecom conference
Meanwhile, a three-day international exhibition-cum-conference, India Telecom-2013, is being organised by the Department of Telecommunications in collaboration with the Federation of Indian Chambers of Commerce and Industry.
Prime Minister Manmohan Singh will inaugurate the conference on December 5 at Vigyan Bhawan.