Tag Archives: Guidelines

Telecom Ministry Presses For Strategic M&A Guidelines

There is no doubt left that post the 2G scam, the telecom industry was taken aback and that is why so much was being talked about the same. There was desperate need to clear out lines of operation so that all the involved parties can get satisfaction. There are recent reports that the communications ministry is in favour of making the M&A norms more liberal so that the best possible services to the customers can be provided.

However, the complete draft has not been made public, close sources have made it clear that there should not be more than six or seven players in a circle (service area). It has been told that post a deal, it should be considered that of the entire total stake, the combined entity should not have more than 25% of the total available airwaves in that region.

Apparently, the telecom department (DoT) panel is not that keen to go with the recommendation given by the TRAI. There is call for making combined entity’s market cap not more than 35%. However, the matter would be discussed by the Telecom Commission in the time to come. There are chances that the matter would get some final look in the next meeting on December 1.

However, bringing the industry, the ministry and the opposition to one common point is not that easy and who better than Telecom Minister Kapil Sibal can tell about this, who would be seeking Cabinet’s approval before enforcing NTP.

There is confirmed news that Telecom Minister would be putting up his best efforts to ensure that this matter is being resolved between the government and service providers soon.

“I will meet with the industry players soon to discuss the 3G roaming issue, industry players have sought time and I am hopeful to resolve the issue”, said Sibal.

Guidelines on banking licenses to be out soon

The guidelines on new banking licenses may be made available in the next three months, said the RBI on Thursday.

Talking on the sidelines of a conference, Deputy Governor of RBI, K C Chakrabarty said that the new framework may take three months to prepare. All depends on the complexities and the kind of situations that develop. But, he said that the RBI is trying very hard to get the guidelines very soon.

This comes a month after the Finance Minister Pranab Mukerjee said in his budget speech that the RBI can now give banking license to private NBFCs. This is being done so that the number of banks is increased.

While on one hand, it would help in better distribution of money, on the other it would allow the interested private players to enter into the banking sector.

As part of this, even the biggest insurer, LIC could get the license. LIC is already operating in the mutual fund and housing loan segment.

But Chakrabarty informed that all depends on the companies meeting the criterion set by the apex bank.