India’s largest mobile operator Bharti Airtel is keeping an open mind on future domestic acquisitions as the country’s government seeks to relax rules for mergers and acquisitions in the telecoms sector to facilitate consolidation in the crowded 15-player market.

“Bharti as a company has grown both through organic and inorganic forms of growth. So we are not averse to acquisition, but every acquisition has to be evaluated on its merits,” CEO Sanjay Kapoor told Mobile World Live in an exclusive video interview. “Given our position in the market, and given the fact that we have a 30 percent market share even in a very crowded market, we see that any move towards acquisition will purely be dependent on what’s on the table. Right now there’s nothing on the table.”

India’s new telecoms policy is expected to be finalised by early next year. Current laws around M&A have prevented consolidation among India’s 15 mobile operators, leading to fierce competition and pricing pressures – and pushing voice prices to below US$0.01 per minute. Under existing rules, each of India’s 22 telecom circles must have at least four non-state-owned operators, and the combined market share of a merged entity cannot exceed 40 percent. Operators are also barred from owning more than 10 percent of another carrier operating in the same circle, and cannot sell a stake for three years after receiving a licence. The amount of spectrum an operator can hold in each circle is also restricted.

The interview with Bharti’s CEO includes Kapoor’s thoughts on how the operator has managed to remain the market leader in such a competitive industry and what he thinks of the current regulatory situation. He also comments on 3G growth so far and plans for future technology deployment.

View the full interview here.