EGoM to discuss M&A norms in telecom sector postponed

NEW DELHI: The EGoM meeting scheduled for tomorrow to discuss the much-awaited M&A guidelines in the telecom sector has been postponed.

"The EGoM meet has been delayed, it's not happening tomorrow. A new date will be decided soon," official sources said.

The high-powered ministerial panel, headed by Finance Minister P Chidambaram, was to discuss mergers and acquisition (M&A) guidelines in tomorrow's meeting. The M&A guidelines were not taken up in EGoM's last meeting on November 22 also.

The M&A guidelines are expected to pave way for consolidation of mobile phone companies in the sector.

Sources said the Department of Telecom (DoT) is still working on some issues regarding the norms, like what rules should be followed in acquiring dual technology player by another telecom operator.

"We are deliberating on the issues to bring clarity," the source added.

The Telecom Commission has already approved draft rules of M&As guidelines which say market share of a merged entity should not exceed 50 per cent in terms of subscriber base.

The Telecom Commission is the highest decision-making body of Department of Telecom (DoT).

On spectrum charges, the draft rules say the entity formed after merger would have to pay for its total holding.