'5 Major Telecos Optimum For Indian Market'

Posted By:
Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    The fresh round of consolidation unfolding in the Indian telecom market is likely to yield five major players ensuring "enough competition but not fragmentation of spectrum", Telecom Secretary J S Deepak said.

    His comments assume significance as India -- the world's second largest mobile services market after China -- is in the midst of massive consolidation with incumbent operators joining forces to take on aggressive newcomer Reliance Jio.

    The consolidation in the otherwise crowded Indian telecom industry has been hastened by Jio's free voice call and data plans, forcing incumbents to slash tariff at the cost of profits. Jio With Big Bonanza, Free Voice Calls Across Networks

    '5 Major Telecos Optimum For Indian Market'

    "Dropping revenue is a concern which we are also addressing...Era of free service and falling revenue will change...In this backdrop, the investments in India are not only welcome but are also likely to be productive," Deepak told PTI.

    On consolidation playing out in the telecom market, he said, "The way things are...this consolidation is going to be very good for India as we are likely to get four private and one government player...BSNL-MTNL...which is ideal."

    Asked if the spate of buyouts would leave enough room for competition in the Indian market, Deepak said, "Ideal is five players for India, which is what is likely to happen".

    Stating that the consolidation is potentially resulting in five big players would ensure "enough competition but not fragmentation of spectrum", he said, it will be "optimum for the Indian market".

    Last week, India's largest telecom operator Bharti Airtel announced the acquisition of Norwegian Telenor's India unit.

    Bharti Airtel's revenue market share will rise to 35.6 per cent following the acquisition. Telenor India currently has 2.6 per cent share in Indian market.

    Vodafone and Idea have already said that they are considering merging their businesses in India, a move that would create the biggest telecom operator in the country with about USD 12 billion in sales.

    Anil Ambani-led Reliance Communications has already signed a pact to merge its wireless business with smaller rival Aircel.

    Goodreturns.in 

    Read more about: telecom jio airtel bsnl
    Story first published: Monday, February 27, 2017, 13:00 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more