It looks like Reliance Jio has affecting the entire telecom industry in India. Idea and Vodafone will merge to battle Reliance Jio. The telecom companies are joining hands together to fight against Relaince Jio. Earlier Airtel and Aircel have been merged and now it’s time for Idea and Vodafone to join hands together. After announcing the merge of Idea nad Vodafone, the shares of Idea cellular has been increased drastically to 15%.
This merger will change the face of telecom industry in India as both the companies Idea and Vodafone are telecom giants in India for more than a decade. According to reports after merging of Idea and Vodafone they would hold 43% of telecom market in India where Bharti Airetl holds 33% market share and the new Reliance Jio holds 13% market share. This merge between Idea and Vodafone will turn the things in telecom industry.
This deal will help both Idea and Vodafone as Idea has a mass market and Vodafone has good strength in metro cities. Both the companies can share their strengths in various aspects and can be a leader in the telecom industry. This merge will give a great competition to Airtel and Jio. However to face these two combined telecom companies is a big challenge for Airtel and Jio.
By November 2016, India has a huge base of mobile subscribers of 800 million which is the second largest market in the entire world. Bharti Airtel has got 33% of the subscribers and is in leading position in the country. Bharti Airtel has 263 million subscribers by November 2016 and Vodafone who stood in second position has got 202 million subscribers while Idea cellular got 187 million subscribers. After the merge of Idea and Vodafone the subscribers will be combined to a whopping 399 million subscribers. This duo will emerge as a leader in the telecom industry in India.
However Bharti Airtel is in plans of acquiring Telenor in a short period but Airtel along with Aircel and even the Telenor cannot beat Idea and Vodafone. So, Finally a new leader will emerge in the Telecom industry in future. Reliance Jio should make necessary plans to face the other telecom giants in the industry who are coming with full force to grab the market.