A
new proposed policy in India aims to expand the maximum combined market share
of merged carriers, a move which some predict will increase mergers and
acquisitions in the country's competitive telecommunications market.
The
National Telecom Policy, which will be submitted to the Communications Minister
Kapil Sibal for review within a week, proposed increasing the maximum market
share of a merged phone company from 40 percent to 60 percent, according to a
report Tuesday by BusinessWeek which quoted India's Telecom Commission
chairman, R. Chandrashekhar.
Under
the new proposal, mergers between operators that have a combined market share
of 35 percent or less will not need anti-monopoly approval. However, merged
companies with a combined share of 35 percent to 60 percent in a
telecommunications circle will still need to seek regulatory approval, said
BusinessWeek. The country is divided into 22 circles.
BusinessWeek
noted that the proposal would still need clearance from the cabinet and
parliament--a process that might take up to June.
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