Trai recommends new M&A norms for faster merger approvals

5

New Delhi, Feb 21 | Trai on Friday recommended that while both subscriber base and revenue are considered in determining marketshare for mobile and internet service providers, revenue should be taken into account in marketshare calculation for other services like national and international long distance telephony.

It also suggested that the one-year timeline currently allowed for transfer/merger of licences in different service areas after the National Company Law Tribunal’s nod should exclude time spent by companies in pursuing any litigation.

Trai recommended that the guidelines on transfer/merger of licences should not “hard-code” the spectrum caps and be linked with the relevant clause of the licence.

The telecom regulator on Friday released its recommendations on reforming the guidelines for transfer and merger of telecom licences.

“For calculation of one year, that is time period allowed for transfer/merger of various licenses in different service areas subsequent to the approval of the Tribunal/Company Judge, the time spent in pursuing any litigation on account of which the final approval of a merger is delayed, should be excluded. This would protect the rights of a telecom operators to pursue remedies in court and also ensure that the period of one year does not become redundant for no fault of companies on account of pendency of an issue before a court,” one of the stakeholders cited by Trai had submitted, it said.

Another provision of the acquisition guidelines which provides an exemption from substantial equity/cross holding clause for a period of one year or more should be modified such that the said exemption is provided only for a period till transfer/merger of licence is taken on record by the licensor (DoT), Trai recommended.

It also suggested that both the number of subscribers as well as Adjusted Gross Revenue (AGR) should be considered for determining the marketshare in case of services like access, internet and VSAT. And that only AGR should be considered for determining the marketshare for rest of the services like national and international long distance, and resale of international private leased circuits.

Trai also recommended that guidelines should explicitly mention that upon payment of market-determined price for spectrum, such spectrum would be treated as liberalised, that is technology-neutral.

It also reiterated its earlier recommendation that if a transferor company holds a part of spectrum which has been assigned against entry fee, the resultant entity should be liable to pay differential amount for the spectrum assigned against the entry fee paid by the transferor company, from the date that the Department of Telecommunications (DoT) approves the transfer/merger.

“However, while raising the demand for payment of differential amount, DoT shall calculate tentative demand from the date of NCLT approval, and upon grant of merger approval, the actual demand of differential amount shall be re-calculated based upon the date of grant of approval. Excess amount paid…if any, shall be refunded back to the transferee company/resultant entity or set off against other dues,” it said.

Source: IANS

Sponsors Posts

Covid-19 Lockdown : Greenwood High International School comes forward to help the needy

Covid-19 Lockdown : Greenwood High International School comes forward to help the needy

Bangalore, April 02, 2020 : The nationwide lockdown to combat Coronavirus outbreak in the country has led to severe difficulties for the poor and homeless people. In an effort to help the needy, Greenwood High International School, has come forward to do their bit to the cause. The school have undertaken the initiative to prepare food for 300 underprivileged families every day and distribute  in and around Sarjapur area with the help of Sarjapur police station. This would be a continuous support from the school authority towards the needy people until the lockdown ends. While distributing the food, the school authority also followed the social distancing norms and ensured that necessary precautionary measures like masks and gloves were used in the entire process to provide clean and hygienic food to the people.

Speaking on this initiative, Ms. Niru Agarwal, Trustee, Greenwood High said: “As much as we believe in inculcating the values of benevolence and philanthropy among our students, we practise these ourselves too. Greenwood High has always been compassionate to help those in need and we continue to do so. We are mindful of contributing to the society in multiple ways and are proud to leverage our sources towards such an important cause. Several NGOs, individuals and businesses are pitching in to help the citizens and government through various initiatives with the hope that humanity would survive these dreadful times of coronavirus onslaught. We believe that only by active collaboration between all the members of the society, we will be able to overcome the impact of this pandemic.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here