New Delhi : The government may finally announce much awaited, first-ever policy on mergers and acquisitions for the telecom sector this week. “It (Mergers and acquisition guidelines) has been cleared by Telecom Commission. We will announce it any day now.
Probably in coming week,” Telecom Minister Kapil Sibal said.Inter-ministerial panel Telecom Commission on November 6 approved the guidelines which will allow telecom companies to acquire operators in a manner that market share of the resultant entity does not exceed 50%.
The M&A policy is expected to further infuse investment in the sector.India’s telecom sector, which has 13 mobile service providers, is expected to see consolidation as some of them under huge debts and unable to generate profits may look to exit the market.