Indian telecom environment is all set for a big
overhaul after many scams and irregularities. On the one hand Indian
government is encouraging electronic
system design and manufacturing in India whereas on the
other hand it is fine-tuning the telecom regulatory environment of
India. The new merger
and acquisition (M&A) guidelines issued by Indian
government is seen as a pro active step by many telecom stakeholders.
The FDI
policy for telecom sector of India 2014 (PDF) has also
been made liberal by enhancing the limits of FDI in telecom sector of
India. Indian government has also given approval
to establish two semiconductor wafer fabrication manufacturing
facilities in India (PDF).
At the same time regulatory compliances have also
significantly increased in India in the telecom related fields. For
instance telecom
due diligence compliances is required to be ensured by
foreign investors and those interested in M&A with Indian
companies. Further, telecom stakeholders exploring the M&A route
must also comply with the Internet
intermediaries requirements and cyber
law due diligence requirements (PDF) as prescribed by the
Information Technology Act, 2000 (IT Act 2000).
The reaction of national and international telecom
stakeholders are mixed in nature. Some have considered these steps as
reformatory while others believe that these steps would not make much
change in the existing circumstances and telecom environment. Only
time would tell who is right in this regard.