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Merger of Telecom Companies

INVC,, New Delhi,, The Minister of State for Communications & Information Technology, Shri Gurudas Kamat informed Rajya Sabha today in written reply to a question that as per the Guidelines dated 22.04.2008 for intra service areas Merger of Cellular Mobile Telephone Service (CMTS)/Unified Access Services (UAS) Licences, any permission for merger shall be accorded only after completion of 3 years from the effective date of the licences. As per clause 6.3(ii) of UAS Licence Agreement, merger or demerger is sanctioned and approved by the High Court or Tribunal as per the law in force, in accordance with the provisions, more particularly Sections 391 to 394 of Companies Act, 1956. So far, Department of Telecom (DoT) has not given any go ahead for the merger of the companies which do not meet these licensing provisions. Intra service area Merger of CMTS/UAS Licences, shall be considered by DoT as per conditions of licence agreements and guidelines dated 22.04.2008 in this regard and after the scheme of merger/amalgamation is approved by the High Court or Tribunal as per the law in force.

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