A reasonable person could argue that consolidation was necessary in the Indian mobile market, which has been among the most-competitive in the world, in terms of the number of suppliers. In most other markets the policy issue is whether four leading operators or only three are sufficient to produce innovation, consumer benefits, but also sustain investment incentives.
India has had far more than four significant providers. Of course, that now is changing. The market is consolidating.
The big changes would come if Idea and Vodafone complete their planned merger, but Reliance Jio also is gaining market share, now having gained about 10 percent market share.
At some point, the issue of “best” market structure is going to develop, if Idea-Vodafone, Bharti Airtel and Reliance Jio emerge as the three biggest suppliers, with other mergers or acquisitions also happening among the remaining smaller providers.
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