M&A rules to come July-end, says Sibal

The much-awaited merger and acquisition (M&A) guidelines in the telecom sector is likely to be announced by July end, communications minister Kapil Sibal said on Wednesday.

The much-awaited merger and acquisition (M&A) guidelines in the telecom sector is likely to be announced by July end, communications minister Kapil Sibal said on Wednesday.

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“I am sure that before July 31 the policy will be in place — the guidelines for mergers and acquisitions,” said Sibal.

At present, there are up to 10 players in a service area. This has resulted in hyper competition and has had negative impact on the financials of operators. Though some operators want to exit, uncertainty in the absence of new M&A guidelines is proving to be a hindrance.

The Telecom Regulatory Authority of India has been asked to give its views on the new reserve price for spectrum auction within 90 days, he added.