Friday, February 17, 2012

Telco mergers made easier, sharing of spectrum tougher

The government has approved mergers between telecom companies with a combined market share of 35 per cent and rejected spectrum-sharing among 3G operators while restricting it for 2G operators. The New Telecom Policy announced by communications minister Kapil Sibal on Wednesday would be a dampener for 3G operators such as Vodafone, Idea Cellular and Bharti, which had signed roaming agreements to share 3G spectrum in circles they had no spectrum in.The three operators had challenged an earlier government decision to this effect before the TDSAT. Operators had forked out Rs 65,000 crore for 3G spectrum, and none was able to get pan-India spectrum. Many were hoping the government would liberalise the sharing of 3G spectrum.
Source: Business Standard

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