Ad Here  
Gem of social service... ALL to launch electric busses Industry-well poised to invest on expansion Celebrating 180 years of relevance Smart controls for cooling large multi-zone spaces ... Tata Steel commence operations at Kalinganagar Time to fast-pace the logistics sector Focus on self-certification and third party inspection Holiday Inn opens in OMR Chennai More gensets and diesel engines from TAFE Economic issues take a back seat at G20 summit Business Briefs Secured NCDs from Shriram City Nigeria comes nearer Chennai will soon get its World Trade Centre ISRO's 100th mission TOP 10 CEO Compensation Digital retail transactions stabilise at higher level… Adding Zest to Scooty TII’s single largest investment at Thiruthani TVS Logistics – another acquisition to sharpen the business model Durga - India’s largest blast furnace; now operational LVB gears to become a financial supermarket AirAsia India infuses funds to fight out competition Innovation that helped Chennai port Economic, business and social sustainability Three more leather clusters… Rating of states to be released soon Applauding enterprise... TII-challenging year with flat growth World labour laws at a glance WABCO’s second Chennai plant ALL-two launches in a row Dynamic e-commerce scenario Chola MS launches motor app Investor friendly Japan The new look- 4s Verna Illicit markets a concern to growing economy Celebration time at MS Chola Auto test tracks launched at GARC Oragadam campus Need to focus on ease of doing business... Realty sector takes a break... Techies trip to India Hero Motocorp - smooth ride Housing Innovation Challenge, 2015 Towards peace of mind Changing dynamics in human resource management ALL – truck industry is recovering from degrowth TCS’ revenues cross Rs 100,000 crore Steel loses its sheen Chola MS net crosses 100 crores An American alliance in the chemical industry? Nothing to hide... Four daughters and a proud father Sun Edison launches solar pumps BRICS development bank On the ‘milky’ way Flexible labour laws… People Flow Day- Safety Bridging the skill deficit in pharma industry IFCI to raise NCDs upto Rs 2000 crore Backpack laboratory A global plastic event in India Indian Bank – global businesses crosses Rs 3 lakh crore... Murugappa- a year of consolidation Business Breif Scoot offers just Rs.13,500 to ANZ... STFC raises money Realising double digit growth in Tamil Nadu TN budget pragmatic and moderate on fiscal deficit TiE applauds innovative entrepreneurs European crisis is a global crisis! Veritas Finance- financing the unfinanced Indigo stays leader with 40 per cent share Striking cords for 25 years… Reality bytes Blue Star plans a new plant in south Apple maps – finding its way Research needs more funding Chennai to get a roundabout Metro SumInfra- corridor based development... Big-ticket investments march towards Punjab Schwing Stetter India joins hands with US-based Gomaco Well-refined – RIL’s refinery margins zoom When Centre visits the state CUB: towards card-less withdrawal Placing the right shoe forward... Brand leaders come forward... Airlines wage price war Automotive Vision Plan II... Carrefour’s quick exit Is Indian telecom industry heading for a monopoly? - Connecting the unconnected Creating Tamil Nadu Banana brand An aerospace-defence cluster in Tamil Nadu… Hyundai excites again Chennai Port is at last decongested! Climate change may change the way businesses work... ECGC expands operations Waste, a gold mine Inclusive and forward moving... Make way for the new and dynamic railways Downsizing spree... Strategy war escalates between Hero and Honda Pharma market dozes Purdue and IIT-M sign the dotted line Curbing steel imports will hurt small business... Ridley marathon to India OBO Bettermann for better lightning protection
Is Indian telecom industry heading for a monopoly?

Anil Ambani-owned Reliance Communications (RCom) had announced the acquisition of MTS’ holding company Sistema Shyam Teleservices Ltd. Even though RCom considers it as the first consolidation in the Indian telecom industry, economically it is not going to add much to its market share. MTS owns a meagre market share of 0.89 per cent with 8 million subscribers.  RCom holds 11.21 per cent with 134.90 million subscribers; Airtel has 23.52 per cent market share followed by Vodafone’s 18.90 per cent as well as Idea Cellular’s 16.53 per cent. But the acquisition offers a wider spectrum visibility. The deal will extend the validity of RCom’s spectrum in the 800 MHz and 850 MHz band in Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, Western Uttar Pradesh and West Bengal by a period of 12 years from 2021 till 2033.

The deal will add revenue of Rs 1500 crore to RCom. Mukesh Ambani’s Reliance Jio has also signed an agreement with RCom to use the latter’s extensive inter-city and intra-city infrastructure of nearly 520,000 km of optic fibre pairs. The aggregate value of the deal was estimated at Rs.12,000 crore.        

Vodafone has also proposed to invest around $9 billion in India thereby adding more cruxes to the competition. Telenor has also hinted an acquisition shortly. With competition among major service providers heating up, such purchases in larger terms would create oligarchies, thereby curbing a competitive business scenario and the smaller players could be forced to exit.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236