The Telecom Regulatory Authority of India ("TRAI")
will soon to be coming out with M&A guidelines. Union cabinet
has approved setting up of two Semiconductor Wafer Fabrication
(FAB) Manufacturing Facilities in India under the National
Electronics Policy of 2012.
1. Telecom M&A guidelines to be in place
The Telecom Secretary MF Farooqui has announced that M&A
guidelines for the telecom sector should be out within the next ten
days. The Empowered Group of Ministers (EGoM), which has approved
the guidelines, has sought legal opinion on whether consolidation
of companies would amount to sale of equity, violating the lock-in
period rule of the telecom license. As per the guidelines
approved by the EGoM, the market share of a merged entity should
not exceed 50%. Telecom companies that bought spectrum in auctions
won't have to make additional payments to the government for
radiowaves after a merger. Only companies that acquire telecom
operators that had been allocated
