Tuesday, December 22, 2015

Reliance Communications to Buy Aircel?

Speculation about consolidation  in India’s ferociously-competitive mobile services market has been a staple of thinking for some years. Including a number of regional providers, India in 2013 had 11 mobile operators, where most markets have three to four national leaders.

Reliance Jio’s entry into the market has been expected to be the catalyst for mergers, and that appears to be happening. Reliance Communications, with about 11 percent market share, is said to be planning a bid to acquire Aircel, with has 8.4 percent market share, for example.

A merged entity would have 19.5 percent share, a substantial improvement, making Reliance Communications the third-largest provider in India.

Vodafone India has nearly 19 percent market share, while Bharti Airtel leads with 24-percent share.


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