On 30 November, the telecom regulator TRAI issues its recommendations to the Department of Telecommunication (DoT) for faster and time-bound approval of M&A proposals, more options for conforming to spectrum holding limits post a merger and streamlining of the penalty levy process among several steps to improve ease of doing business.
This year in March, the regulator started consultation, where it requested stakeholders to review the existing processes and identify the bottlenecks, obstacles or hindrances that were making it difficult to do telecom business in India and, thus, require regulatory intervention.
The recommendations said, "Promoting ease of doing business is essential for unhindered growth of the telecom sector and is amongst the priorities of the government. To support and actively encourage this, processes that telcos go through should be reviewed, simplified and/or combined to economise efforts of telcos and government."
TRAI also suggested definite timeline, not exceeding 30 days post National Company Law Tribunal (NCLT) approval, for providing written approval to transfer or merger of licences and that it should be made a part of the M&A guidelines as well.
TRAI recommended: “In the past, it has been noticed that the written approval for merger of service licences from the Licensor sometimes takes a very long time. Such considerable delays could also hamper the benefits of synergies through merger.”
The recommendations said, "Promoting ease of doing business is essential for unhindered growth of the telecom sector and is amongst the priorities of the government. To support and actively encourage this, processes that telcos go through should be reviewed, simplified and/or combined to economise efforts of telcos and government."
TRAI also suggested definite timeline, not exceeding 30 days post National Company Law Tribunal (NCLT) approval, for providing written approval to transfer or merger of licences and that it should be made a part of the M&A guidelines as well.
TRAI recommended: “In the past, it has been noticed that the written approval for merger of service licences from the Licensor sometimes takes a very long time. Such considerable delays could also hamper the benefits of synergies through merger.”
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