The Indian Government is expected to publicize the guidelines for mergers and acquisition, which would lead the way for consolidation among the telecom sector, by the end of this month.
In February last year, India's Telecom Ministry issued extensive guidelines for mergers and acquisitions. However, the comprehensive guidelines are yet to be released.
The guidelines, which have been approved in principle, include speedy approval of merger proposals provided that their combined market shares would reach 35%.
Kapil Sibal, Law and Telecom Minister, said "I am sure that before 31st of July that policy will be in place, the guidelines for mergers and acquisitions."
India's telecom sector currently has over 13 mobile phone service providers and that a number of them may consolidate after the final guidelines are released.
In a report by the Economic Times, a telecom company executive who requested anonymity said "Telecom operators are talking to each other. There are three Indian service providers that are looking for significant stake sale but waiting for clear guidelines."
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