An Introduction to

Telecom Media Technology (TMT)

Sector in India

KHAITAN & CO | JOINING HANDS: JOINT VENTURES IN INDIA AND TAX CONSIDERATIONS 2
AN OVERVIEW OF RECENT TRENDS IN THE TMT SECTOR
Telecom sector is in a phase of consolidation in India. Conducive policy framework and launch of
Reliance Jio (new telecom operator) has led to an overhaul of the industry. Different corporations
have strategized themselves differently considering their strengths and weaknesses. Some of the
players have merged, others are pumping more capital while some are preparing to exit. With
large wireless subscriber base, which is expected to swell further, foreign investors have also
shown keen interest in the sector. As a result, there has been a surge in foreign investments over
the years making India emerge as a leading market for telecom players.

Media sector has been steadily growing. Digitalization of TV signals has led to better consumer
experience, lower carriage charges and transparency in viewership. The TV industry in India
covers almost 161 million households. The Government’s Phase – III spectrum auction for FM radio
channels has also provided the much needed impetus to the sector and will see the launch of
many new radio channels across various cities in India.

India being the topmost offshoring destination the IT industry has seen phenomenal growth in
recent years. The sector has also seen tremendous surge in launch of domestic e-commerce
companies and expansion of multi nationals. Rapid emergence of e-commerce aided in continued
growth of data-centers in the country. The public cloud service revenue in India is expected to
grow by 30% year-on-year. With government’s focus on digitalization there is a boost in
manufacturing of IT equipment in India.

TMT CAPABILITY OF KHAITAN & CO

■ Regulatory advice on CUG, OSP, Infrastructure providers, Undersea Cable Network, Mobile
Broadcasting, Internet Telephony, Virtual Operators, Spectrum Sharing & Trading, Cross
Media Ownership, License Fee, Numbering Plan, Tariffs, Quality of Service, Interconnection
issues, Auction of Spectrum

■ Advice related to Information Technology, Data Protection, Digital Signature, Intermediary,

CERT, Electronic Records, Cloud Services

■ Liaising with DOT, TRAI & MIB officials on various issues

■ Audit of Telecom, DTH, MSO, HITS operators and creation of compliance calendar

■ Mergers and related due diligence of Telecom & Media companies

■ Drafting and negotiation of complex contracts for equipment, software, services,

outsourcing, marketing, channel partners, managed services, cloud services, fiber pair of
undersea cables

■ Filing application for grant of licenses, uplinking and downlinking permissions, OSP
registration, IP-1 registration, telemarketer registration

■ Secondment with telecom and IT companies to carry out day to day in house work on special
projects

■ Handling litigation and alternate dispute resolution pertaining to TMT issues and contracts

KHAITAN & CO | AN INTRODUCTION TO TMT SECTOR IN INDIA 1

SNAPSHOT OF LATEST DEVELOPMENTS
■ Largest ever telecom spectrum auction worth USD 85 Billion

■ World’s biggest greenfield digital initiative Reliance Jio launched with an investment of USD
22 Billion

■ Spectrum Trading and Spectrum Sharing Guidelines released

■ Launch of New license for Virtual Network Operators (VNO)

■ New Right of Way Policy for ease of Infrastructure development

■ Launch of 100 Smart Cities expected to fuel M2M Market

■ Total satellite TV channels crossed 800 mark

■ More than 200 New FM channels to be rolled out soon

■ Policy on Net Neutrality and OTT expected soon

■ New Encryption Policy in pipeline

WORK EXPERIENCE
■ Advised Aircel limited and its shareholder Maxis Communications Berhard (MCB) on the merger (by
way of slump sale) of the entire wireless telecommunications business of Reliance Communications
Limited and Reliance Telecom into Aircel and Dishnet Wireless Limited. This deal is the largest ever
consolidation in the Indian telecommunications sector. The Merged Co will be one of India’s largest
private sector companies, with an asset base of over INR 65,000 crores (USD 9.7 Billion) and net worth
of INR 35,000 crores (USD 5.2 Billion).

■ Advised Reliance Communications Limited in acquisition of the wireless telecom business of Sistema
Shyam Teleservices Limited through a court approved scheme of arrangement. As a result of this deal,
the wireless business of Sistema Shyam Teleservices Limited carried on in India under the MTS brand
will be demerged into Reliance Communications Limited.

■ Advised Reliance Jio in acquisition of fibre pair on Network i2i submarine cable system

■ Advised and negotiated contracts worth USD 1 Billion for Reliance Jio involving acquisition of telecom
equipment

■ Advised British Telecom on regulatory aspects for launch of new products in e-health segment

■ Advised NTT DoCoMo, Inc. on acquisition of 26% interest in Tata Teleservices Limited for USD 2.7 Billion.

■ Advised HCL Technologies Limited in relation to acquisition of the external IT business relating to
provision of IT infrastructure, mainframe services and application operation services from the Volvo
Group, for USD 138 Million.

■ Advised Tata Communications Limited in relation to definitive agreements whereby ST Telemedia,

through its wholly owned subsidiary, ST Telemedia Global Data Centres (STT GDC), agreed to acquire a
74% majority stake in Tata Communications’ data centre business in India and Singapore.

■ Advised Times Internet Limited in relation to acquisition of Willow TV International for a total
consideration of USD 100 Million.

■ Advised Accenture on issues related to providing IT services from a back end office to its clients outside
India using VOIP and internet telephony.

■ Advised Dell in relation to Data Protection Laws and developments in IT Act for launch of a security
product in India.
KHAITAN & CO | AN INTRODUCTION TO TMT SECTOR IN INDIA 2
 ■ Advised Inox in relation to acquisition of 43.28% stake in Fame India Limited for approximately USD 21
Million.

■ Advised Jagran Prakashan Limited in relation to acquisition of Music Broadcast Private Limited’s parent
company IVF Holdings Private.

AWARDS AND RECOGNITION

India Business Law Journal India Business Law Journal India Business Law Journal
DEALMAKER - Deals of the DEALMAKER - Deals of the DEALMAKER - Deals of the
Year 2016 Year 2016 Year 2016
Demerger of Sistema's Indian Reliance Communications Singapore Technologies
wireless business merger with Aircel Telemedia’s acquisition of 74%
stake in Tata Communications’
data centers business

The M&A Atlas Awards Global

India Business Law Journal deal of the year India Business Law Journal
DEALMAKER - Deals of the Cross border deal of the Year DEALMAKER - Deals of the
Year 2016 2016 Year 2015
Hexaware Technologies’ senior Capgemini acquisition of IGATE Capgemini's acquisition of
notes to HT Global IT Solutions IGATE

ALB SE Asia Law Awards

Chivas 18 Award SE Asia M&A ALB SE Asia Law ALB SE Asia Law
Deal of the Year 2009 Awards 2008 Awards 2008
Equity Market Deal of the Year SE Asia M&A Deal of the Year
NTT DoCoMo – Tata
Teleservices Investment Idea Cellular IPO Hutchison Essar Acquisition

This document provides some basic information pertaining to the issues and should not be construed as a legal
opinion or legal advice. It may neither be relied upon by any person for any purpose, nor is it to be quoted or
referred to in any public document or shown to, or filed with any government authority, agency or other official
body.

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KHAITAN & CO | AN INTRODUCTION TO TMT SECTOR IN INDIA 3

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