Reliance Jio Disruption Continues: After Bharti Airtel’s Acquisition of Telenor India, Vodafone and Idea Set To Merge
Things are happening fast for India’s telecom industry. After Bharti Airtel’s acquisition of Telenor’s India Unit, Vodafone India and local player Idea Cellular agreed to merge their operations. The new entity, after the Merger, will be the likely leader in the market with roughly 397 million subscribers, when measured by the number of customers, and would control about 35% of the market.
Bharti Airtel, after its acquisition of Telenor India operation, will have a subscriber base of about 307 million,
Indian wireless telecom industry has seen a wave of consolidations over the past few months after the entrance of Reliance Jio in November 2016, which is investing heavily in acquiring customers. The company now has over 100 million subscribers in a less than five months period.
It has upended competition by slashing prices for both voice and 4G data. It is also offering free services for a six-month period to the new subscribers. The company is investing heavily and is not showing any sign of slowing down. According to the Financial Times, Reliance Jio has spent $25 billion so far. Strategically, Jio is not only eyeing for urban Indians, it is also targeting a huge segment of Indian population who are yet to access the internet and will do so through smartphones.
Strategically, Jio is not only eyeing for urban Indians, it is also targeting a huge segment of Indian population who are yet to access the internet and will do so through smartphones.