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This is an archive article published on May 11, 2010

TRAI suggests lifting M038;A restrictions

Currently,India restricts telecoms firms from selling majority stakes within three years of getting licence.

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The Telecom Regulatory Authority of India on Tuesday recommended ending restrictions on telecoms firms selling out,a move which will help consolidation in the world8217;s fastest growing telecoms market.

Currently,India restricts telecoms firms from selling majority stakes within three years of getting licence.

India8217;s telecoms regulator also suggested telecoms firms pay a one-time fee for holding radio-spectrum beyond 6.2 mega hertz MHz based on 3G prices,a move that will hit established operators like Bharti Airtel and Vodafone.

India currently grants additional radio airwaves to firms when they reach subscriber-addition milestones,only charging a usage fee for the resource.

The recommendations of the Telecom Regulatory Authority of India TRAI have to be accepted by the telecoms ministry before they become law.

Fifteen operators service 584 million mobile phone users in India,the world8217;s second-largest market for such services after China. The addition of nearly 16 million users each month has attracted global names like Norway8217;s Telenor,Japan8217;s NTT DoCoMo and Abu Dhabi8217;s Etisalat.

 

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