The entry of Reliance Jio in the Indian Telecom Market has lead to some serious impacts and this one is surely a big one. To cope up with the severe fall in profits ever since Reliance Jio was introduced, Vodafone and Idea Cellular are very soon expected to take the extreme step of getting merged together. The biggest loser in this whole deal is expected to be Bharti Airtel who are already badly affected because of Jio.
After trying all they could, Airtel, Vodafone and Idea are now left with almost no choice but to accept defeat at the hands of Reliance Jio. The three major telecom companies lowered their pricing standards and offered free services too but failed to cope up with the polarisation tactics of Reliance Jio. Airtel even went on to warn TRAI regarding the possible consequences that Indian Telecom Industry is expected to encounter because of Jio.
Now the only thing left is a possible merging between two of the top three Indian telecom companies. The total worth of Indian Telecom Industry stands at a massive $26 Billion which is majorly shared by Airtel, Idea and Vodafone. Bharti Airtel currently leads the list for company with most subscribers followed by Vodafone and Idea. The possible merging between Idea and Vodafone will expectedly dethrone Airtel from the number one position.
Vodafone and Idea almost have similar plans running throughout the nation and thus, a merging between these two companies will hardly have any significant effect on customers. However, experts predict an increase of three per cent in the revenue of both companies if the merging takes place. Airtel’s shares have shown a great rise of 2.3 percent in Mumbai yesterday. Idea and Reliance Communications gained about 1 percent each. The benchmark S&P BSE Sensex Index rose by 0.7 percent.
Airtel, still somehow managing to hold on to the top spot, will have to find some special ways to keep themselves on the right track. The merging between Idea and Vodafone is just one of those many effects which Jio has lead to. Do let us know your views on this possible merging of Idea and Vodafone in the comments section below.
