M&A norms will ensure level playing field: TRAI

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The TRAI has come out with its recommendations on M&A activity in the sector. TRAI Chairman Nripendra Misra said the recommendations are conducive to future technology and that the M&A norms are intended to avoid the merger of top two players in a circle. He added that the number of players in each circle should be left to market forces.

According to Misra, the recommendations will ensure that a level playing field is maintained. He added that recommendations will be made on spectrum allocations and that they will provide technology neutrality.

Misra said that TRAI will invite auction pricing for spectrums except 800, 900, 1800 MHz. "Operators going beyond 10 MHz need to pay a one time charge of Rs 16 crore. The spectrum charge for beyond 8 MHz has been raised by 1% and for that beyond 15 MHz has been raised by 8% of AGR," he said adding that the M&A dominance criteria is to be based on subscribers and AGR.

He also said that the minimum service providers per circle has been raised to four from three and that the automatic approval for cross holding has been raised to 20% from 10% while the M&A dominance criterion has been brought down to 40% from 60%. "The 15 MHz ceiling has been removed in case of M&As and USAO charges will come down to 3% in case of 80% rural completion," Misra added.

 

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