The Telecom Regulatory Authority of India (TRAI) said that current merger and acquisition (M&A) rules needed to be reworked by the government for any pick up in consolidation activity. Easing the M&A rules, the government had allowed mergers between firms with up to 50 per cent combined market share.
According to Rahul Khullar, Chairman, TRAI, easing the M&A rules, the guidelines have been a non-starter as M&A activity has not taken place despite the industry being in dire need for consolidation. Telecom operators have long been demanding changes in the M&A rules, terming them difficult. Earlier, telecom firms were allowed to merge if their combined market shares in terms of subscriber base does not exceed 40 per cent in any of the nation´s 22 circles or zones.
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