India is one of the biggest telecom markets. These days wireless mobile network is dominating the entire telecom market. A few years back there were multiple numbers of Telecom operators. But in such a competitive market with the passage of time, so many companies even were not able to meet the working capital needs. On the other side were not able to meet the market standards with their Tariffs & the Network services. These companies did the merger or the alliance.
Big mergers during last few years are:
Bharti Airtel & Tata Telecom Service Merger in 2017- About 40 Million Tata Customers joined BhartiAirtel, made it approx.. 300 Million subscribers company.
Airtel & Telenor India Merger in 2017- Airtel took over Telenor in seven Circles Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam, with the acquisition of its 43.4 MHz spectrum in the 1800 MHz band, 44 million customers were added to Airtel’s base
Vodafone & Idea Merger- The latest merger which is ongoing is of these leading telecom giants of India. This will be the biggest merger ever done before. Both the companies have their expanded network, large customer base, maximum of Service centres & both are stabled Brands in Indian Telecom Market. The result will be of approx. 400 million customers & also will have decent Revenue Market Share too.
Why did these Mergers happen in Indian telecom industry?
It’s a big-time question. There are several factors responsible for the same. In Indian Telecom Market every player wants to get the maximum of Customer share, which is their primary goal, the secondary is the revenue market share.
If we go in depth, we come to know the decreasing Tariffs & increasing Telecom subscribers. After the launch of Reliance JIO, the tariffs went down drastically. On the other side, Telecom revenue went down. Most of the customers are using unlimited tariffs. Due to TRAI guidelines, Data overcharging is restricted to avoid over billing & harassment to the customers. This is the main leading reason towards the mergers in India.
First, we talk about Mergers, Second was decreasing in Telecom Tariffs & the third very important aspect in Indian Telecom Industry is the amazing increase in the Data consumption. The mobile companies also played a special role here with latest eye-catching technologies.
Indian mobile users started using the data on very frequent intervals because of it’s lower cost after the Reliance JIO’s free unlimited data offer, followed by other operators. The social media apps have also yielded the output from the same.
Looking into the future trends of Indian Telecom Industry, one should follow the ongoing changes from the past in this sector. Ending up with some very interesting facts which will help us for having the future vision.