Government to Clarify New Acquisition Rules in Wireless Telecommunications

June 15, 2013

A lot of wireless telecommunication companies such as Russia’s Sistema JSFC and Norway’s Telenor ASA are losing loads of money in the fastest growing wireless technology in the world, wireless telecommunication. Those two countries spent over 7 billion on Indian networks and airwaves and have been waiting for new acquisition rules as it should clear the way for consolidation. The new acquisition rules will hopefully boost profitability significantly and also cut the number of wireless telecommunications carriers by half.
This is all in order to aid India’s cut throat wireless telecommunications market. Operating margins are the lowest in Asia and the sales of smartphones continuous to rise. According to research there are more subscribers to mobile telecommunication companies in India than in South America and North America. India has 13 wireless technology companies and the largest are Vodafone Group PLC and Bharti Airtel Ltd. The rise in call prices for the wireless telecommunications company Bharti was forced according to the chief executive officer, due to the amount of wireless telecommunications operators.
If rival companies are eliminated by the passing of the new acquisition rule will enable the larger companies to acquire the smaller companies and cellular devices will be operated at a much lower cost is the overall feeling. The court has already cancelled 122 wireless telecommunication services in 2012 and corruption during original allocation was cited.
Tata Teleservices and Aircel seem to be two of the players to be on the chopping block and it makes sense to large companies such as Sistema and Telenor. Both Sistema and Telenor have spent billions on the Indian telecommunications services and control a reasonable amount of the Indian mobile-phone market.
It will not be a completely profitable growth immediately for all involved, but further consolidations in the future will strengthen the Indian wireless telecommunications market tremendously.


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