In the run-up to the new government taking charge at the centre, the Department of Telecommunications (DoT) in a presentation to the cabinet secretary has underlined the need for a more liberal merger and acquisition (M&A) policy for the telecom sector.

In the run-up to the new government taking charge at the centre, the Department of Telecommunications (DoT) in a presentation to the cabinet secretary has underlined the need for a more liberal merger and acquisition (M&A) policy for the telecom sector.  

The department has suggested easing entry and exit norms for companies interested in investing in the telecom sector. The DoT’s suggestion has come within three months of the previous government notifying a new M&A policy.

The M&A policy relaxed the market share cap of a merged entity by increasing it from 35 per cent to 50 per cent. However, DoT has indicated that the new government should re-examine the M&A norms which require a buyer to pay market-linked price for spectrum which comes with an acquisition. The department has underlined that this clause was criticized by the operators and as well as various industry bodies.

In addition, the DoT has also raised issues regarding key policy initiatives including spectrum trading, sharing of national optical fibre network and full mobile number portability.