In an effort to protect consumer interest and prevent selling off of spectrum by any new licencee on profit, the government on Tuesday announced that any permission for merger of two licencees would be accorded only after completion of three years from the effective date of the licences.
The government made the condition clear in the revised guidelines issued on Tuesday for intra-service area merger of Cellular Mobile Telephone Service (CMTS)/ Unified Access Service (UAS) licences.
“The Guidelines have been revised keeping in mind TRAI recommendations of October last year which had specified revision of merger guidelines and done keeping in mind public interest in general and consumer interest in particular,” Department of Telecommunication (DoT) said.
Any merger of two licences can take place, as per the guidelines, only with prior approval of DoT and within the same service area. Mergers will be allowed between CMTS and CMTS, UASL and UASL, and CMTS and UASL, but the merged licences would become UASL.
No merger or acquisition would be allowed if the number of UAS/CMTS access service providers reduces below four in the relevant market following such an activity.