NTA plans merger and acquisition
KATHMANDU:
Nepal Telecommunications Authority (NTA) formed a five-member committee to develop merger and acquisition policy. Former secretary Madhav Paudel-led committee is directed to recommend the authority to submit detailed report on the possibility of merger and acquisition in the telecom sector. The committee will study the contemporary trend of merger and acquisition throughout the world and suggest the government the most suitable model, spokesperson at the authority and member secretary of the committee Kailash Prasad Neupane said, adding that the committee is also directed to carry out study on the need of merger and acquisition of telecom service providers in Nepal.
The merger policy in telecom sector is very important since the chance of merging two separate telecom service providers always remain possible, Neupane informed, adding that the committee will suggest the suitable merger policy. The mergers and acquisitions in telecom sector are regarded as horizontal mergers simply because of the reason that the entities going for merger or acquisition are operating in the same industry. “But the solid policy is a must since merger is very sensitive issue,” he added, “Merger between two giant service providers could, however, end the competitive environment and create monopoly market,” he said, adding that the committee will study such crucial issues too.
Earlier, the government last May had formed a committee under the coordination of Baburam Pokharel to carry out study on the situation of rural telecom service providers and make necessary recommendations to the government for their welfare. “It had also recommended the government to introduce a merger provision for the sustainability of the rural service providers,” Neupane said.
The number of mergers and acquisitions in telecom sector has been increasing significantly in recent days. Telecommunications industry is one of the most profitable and rapidly developing industries in the world.
Source: THT
Nepal Telecommunications Authority (NTA) formed a five-member committee to develop merger and acquisition policy. Former secretary Madhav Paudel-led committee is directed to recommend the authority to submit detailed report on the possibility of merger and acquisition in the telecom sector. The committee will study the contemporary trend of merger and acquisition throughout the world and suggest the government the most suitable model, spokesperson at the authority and member secretary of the committee Kailash Prasad Neupane said, adding that the committee is also directed to carry out study on the need of merger and acquisition of telecom service providers in Nepal.
The merger policy in telecom sector is very important since the chance of merging two separate telecom service providers always remain possible, Neupane informed, adding that the committee will suggest the suitable merger policy. The mergers and acquisitions in telecom sector are regarded as horizontal mergers simply because of the reason that the entities going for merger or acquisition are operating in the same industry. “But the solid policy is a must since merger is very sensitive issue,” he added, “Merger between two giant service providers could, however, end the competitive environment and create monopoly market,” he said, adding that the committee will study such crucial issues too.
Earlier, the government last May had formed a committee under the coordination of Baburam Pokharel to carry out study on the situation of rural telecom service providers and make necessary recommendations to the government for their welfare. “It had also recommended the government to introduce a merger provision for the sustainability of the rural service providers,” Neupane said.
The number of mergers and acquisitions in telecom sector has been increasing significantly in recent days. Telecommunications industry is one of the most profitable and rapidly developing industries in the world.
Source: THT
