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Indian Telecom Sector in Need for an Industry Friendly Regulation

News

The telecom industry wants the regulator to take steps to revise the mergers and acquisitions policy to facilitate consolidation in an intensely competitive sector and help cut costs, improve services and reduce debt.

Source – ET

SNP Insights

With the increasing competition, stiff spectrum pricing regimes and lack of industry friendly policy, the telecom industry in India is facing issues of high operational cost and high debt. To overcome this low profit situation, the companies are looking for consolidation through Merger and Acquisition for which the constraints are the regulatory policies. This strategy if executed, apart from benefiting the company by uplifting its financials, may provide a new business path and emerge as a game changer for the Indian telecom sector. 

Source – SNP Infra Research