Consolidation in Indian Telecom Sector

#1
The much awaited and much anticipated consolidation in the Indian Telecom sector kicks in. This may be too early to spot a trend, however market demands moving to a oligopoly of 3-5 operators from the 15 operators (pre-2G-license cancellation by Supreme court)

Telenor in talks to merge India operations with Tata Teleservices - The Times of India

While consolidation is good for the sector and business houses, it is a negative for customers. Lesser choices of switching, higher prices. Also abolition of roaming from Jan 2013 may result in significant hike in call charges.

No roaming charges from 2013: Government
 

Alchemist

Administrator
Staff member
#2
This may be too early to spot a trend, however market demands moving to a oligopoly of 3-5 operators from the 15 operators (pre-2G-license cancellation by Supreme court).
I don't think the number will ever fall below 6.

There are many big companies in India who would like to and have the ability to remain independent operators like BSNL, Tata Group, Bharti, Vodafone and Idea.

Aircel may agree to merge if it gets a good price.

Reliance Communications may get sold or merged as it is facing a lot of challenges.

RIL has entered the telecom sector and may takeover one or more smaller companies to foray into voice services.
 
#3
I don't think the number will ever fall below 6.

There are many big companies in India who would like to and have the ability to remain independent operators like BSNL, Tata Group, Bharti, Vodafone and Idea.

Aircel may agree to merge if it gets a good price.

Reliance Communications may get sold or merged as it is facing a lot of challenges.

RIL has entered the telecom sector and may takeover one or more smaller companies to foray into voice services.
Quite agree about Aircel (Maxis planning to exit) and R Com (CDMA not sustainable in India).

I see the following as long term players :

1) Bharti, 2) Vodafone, 3) BSNL+MTNL, 4) Tata+NTT Docomo+Telenor (if goes through)+??, 5) Idea+ ???

Idea will most likely sell out as both the Axiata group and Aditya Birla Nuvo wants to cash out.

RIL can be a possible buyer, but the deal pricing is a major issue. They might even choose to roll out on their own, like they decided for 4G.
 
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