Report on M&a in Indian Telecom

Mergers & Acquisitions (M&A) in Indian Telecom Industry Submitted by: Akshat Mittal NSIT, Delhi 1. Introduction: Indian has achieved an overall teledensity of 67% and rural teledensity of 31%. Indian telecom industry is fast becoming an cute destination for foreign investors and is experiencing consolidation of operations. It has witnessed several multi-billion dollar M&A deals ever since the telecom industry was loose to the private players in 1995. In the Indian telecom industry, nigh of the attainments were horizontal which helped the acquirers to expand the area of their operation and customer shank quickly. These provided economies of scale with phenomenal benefit to the acquirers in terms of high profitability, and better valuations. 2. Regulations governing M&A base on recommendations by TRAI: 3.1. Any nuclear fusion reaction or acquisition should not give rise to a monopoly situation in the market i.e. the merged entity should not have more than than 40% of the market share (latest TRAI recommendation proposes to reduce this to 30%). 3.2. A single entity cannot have more than 10 % share in two different telecom companies operating in the equivalent circle.  3.3. FDI in a company should not exceed 74%. 3.4. The number of operators in a circle post merger should not fall below 4.

3.5. The service provider must(prenominal) have operated for a period of three years forward considering any sort of merger. 3.6. The merged entity should not hold more than 14.4 MHz spectrum for GSM services and 10 MHz for CDMA services. 3. Factors driving M&A in the Indian Telecom Industry 4.7. The comprehension of internet (including broadband) and cable services in the telecom sector. 4.8. deregulating in the telecom sector. 4.9. Telecos wish to achieve economies of scale and mitigate margins. 4.10. Many foreign telecom heavyweights such as Vodafone and British telecom are reentering in the Indian market... If you want to trounce a full essay, order it on our website: Orderessay

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