National Telecom Policy to raise market share to 60 per cent for merged companies
27 Dec 2011
The National Telecom Policy would increase the maximum market share for a merged phone companies from 40 per cent to 60 per cent, according to R Chandreshekhar, telecommunications commission chairman who spoke to reporters in New Delhi yesterday.
He said, the commission would submit its draft to communications minister Kapil Sibal for review within a week.
The new regulations may result in consolidation in a market that has seen call charges drop sharply eroding profitability, with 15 players slugging it out for their share of the market.
Carriers are also asking for more spectrum to roll out their broadband offerings that would allow wireless video streaming and data downloads.
Chandreshekhar said the proposals would allow spectrum auctions and limit a merged company to holding 25 per cent of the available airwaves. The Indian market is split into 22 telecommunications zones.
The proposed new rules would do away with the need for anti-monopoly approval for mergers between carriers that between them have a combined market share of 35 per cent or less.
