An empowered group of ministers (EGoM) cleared the final merger & acquisition (M&A) guidelines for the sector. The EGoM has also decided to increase the quantum of 1,800-MHz spectrum to be put up for auctions in January to 403 MHz, an addition of 118 MHz, or 41.4 per cent, to what it had proposed earlier. The addition also means that an average 18 MHz of spectrum will be up for sale in each circle enough for three to four operators.
The ministers also agreed to increase the earlier- proposed 35 per cent cap on market share (in revenue, as well as user base) for merged entities in a circle to 50 per cent. However, if a merged entity breaches this 50 per cent ceiling in any circle, the companies will get a year to lower the share to below 50 per cent. According to experts, the EGoM´s decision will benefit incumbent operators.
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