In a recent move The Telecom Commission (TC) , the apex decision-making body of the communications ministry allows liberal M&A norms to promote consolidation in the 14-player telecom market.
mobile avatar - thanks to lowest telecom tariff in India
It also agreed that the annual revenue share be fixed at a uniform 8% for all telcos. This is higher than the 6% revenue share proposed by regulator Trai that would have brought significant savings to the industry. Currently, the revenue share varies on a number of factors such as service and region.
Will Indian customers get benefitted through this move? I feel Indian CSPs have already bore the brunt of intense competition and pricing/tariffs have reached at its bottom. Lately market leader Bharti made a reverse move in pricing/tariff, after that pricing from other CSPs are on upslope. Recent M&A move will definitely affect the telecom tariffs, there may be more cartelization. Indian customers may have to pay more for same service.
