Telecom regulator TRAI has decided to make small changes to its existing merger and acquisition guidelines. It has now agreed to DOT’s request of raising the demand of one-time spectrum charges (OTSC) before giving written approval of a merger. “The Authority noted that the DoT raises the demand for payment of OTSC before giving the written approval to the merger,” said the Telecom Regulatory Authority of India (TRAI) in the recommendations of ‘Ease of Doing Telecom Business.’

The DoT in its back reference had proposed that when the licensee applies for transfer/merger of licenses to DoT, the latter will raise demand upon transferee of, from the date of NCLT approval, with a stipulation that such demand is subject to revision after the grant of approval of transfer of licenses by DoT.

Tentative demand

The demand of OTSC will be recalculated based on the date of grant of approval. Excess amount paid, if any, will be refunded to the transferee or set off against other dues. However, it was also noted that while raising the demand for payment of OTSC, DoT will calculate tentative demand from the date of NCLT approval, and upon grant of merger approval, the actual demand of OTSC shall be recalculated based upon the date of grant of approval.

“Excess amount paid by the transferee company/resultant entity, if any, shall be refunded back to the transferee company/resultant entity or set off against other dues,” TRAI noted.

Other than this, TRAI has reiterated to its earlier recommendations including validity period of the Experimental (radiating) Licence initially by six months and extendable by another six months.

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