Wednesday, August 29, 2007

No cap on number of service providers in each circle: TRAI

Telecom Regulatory Authority of India (TRAI) on Wednesday released its recommendations on reforms in telecom licensing policy and said there should be no cap on the number of access provider in any circle.

On mergers and acquisitions, the regulator said the market share of the merged entity should not exceed 40 per cent either in terms of subscriber base or revenue. At present, this cap is at 67 per cent.


TRAI also raised the cap on equity capital from 10 per cent to 20 per cent up to which a telcom player can acquire stake in another telco in the same service area.

On the issue of access providers using a combination of CDMA and GSM technology, the regulator said the existing license should be permitted to be used to provide services through either of the technology, subject to certain conditions . ( GOOD NEWS FOR RCOM & TTML )

TRAI has not changed the roll out obligation for the access providers.


The recommendations are subject to approval from Department of Telecom before being formed into law.

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