NEW DELHI: With several mergers and acquisitions (M&A) in the telecom sector getting stuck over lack of clarity on the existing guidelines, the Telecom Regulatory Authority of India (TRAI) on Thursday issued a consultation paper on reforming the guidelines for transfer and merger of telecom licences.
TRAI has invited comments on the ‘National Digital Communication Policy (NDCP) 2018’ under the ‘Propel India’ mission, by October 28. With the new guidelines, the telecom regulator aims to simplify and fast-track the M&A process and ward off litigations.
The paper on reforming the guidelines for transfer and merger of telecom licences was issued following reference from the Department of Telecommunications (DoT). The reforms are intended at boosting investments in the digital communications. “A consultation paper...has been released providing the background information and seeking inputs of the stakeholders on reforms required to be made in the existing guidelines on transfer/merger of licences to enable simplification and fast-tracking of approvals,” said TRAI.
The DoT has said that in many merger proposals, the entities have filed petitions before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to quash and set aside certain conditions imposed upon them by the telecom department.
“TDSAT on several occasions has granted stay to the operation of some of such conditions. This has resulted in uncalled for delays in mergers being taken on record,” it said.
The telecom regulator consultation paper seeks views on M&A in case of virtual network operators, who operate in partnership with telecom operators, but don’t have a permit to install core network elements.