On Tuesday, the telecom regulator, Telecom Regulatory Authority of India (TRAI) said that it has recommended the ending of restrictions on companies that want to sell out.

This, TRAI said, will bring about consolidation in the Indian telecom market, which is one of the fastest growing in the world.

The current regulations do not allow companies to sell majority stake in the first three years period of their license. These are applicable to the ongoing auctioning of the 3G spectrum as well.

Talking to the media, the new Chairman of TRAI, J. S. Sarma said that the sector needs consolidation. He also clarified that TRAI was not trying to mandate a consolidation but is only facilitating it.

But some restrictions will continue to persist. These are related to the mergers which allow a company to take more that 30 per cent of total subscribers in any of the 22 telecom zones in India.

The recommendations have been sent to the Telecom Ministry and are awaiting their approval before becoming a law.

Currently, India has 15 operators and 584 million mobile users making India the second largest market for the service after China.