According to recent survey, Indian telecom industry is all set to be consolidated with just 4 companies in the fray by 2020. We saw the merger of Vodafone with Idea, MTS and Aircel with Reliance Infocomm leaving BSNL, Jio and Tata Tele. Tata Tele which has bought out its Japanese partner after it decided to exit following the failure to gain major share in the Indian market is already leading in debts to the tune of Rs.30,000 crore though TATA has decided to infuse Rs.12,000 crores to further strengthen the infrastructure and facilities.
While TATA Group is the biggest conglomerate in India for many decades until RIL overtook it, thanks to great performances by its refinery and the introduction of the telecom disruptor, JIO which has seen record 100million subscribers in a very short span of time where Mukesh Ambani is beleieved to have invested in excess of Rs.1,50,000 crores, this news comes as a surprise since both of them never had any business ties in the past including hiring the employees from one another.
Sunil Bharti led Airtel has also evinced interest in acquiring the TATA Tele brand since Airtel has also posted a decline in the profits for the first time in the past 7 years after Jio entered the market sending the prices of Mobile Calling,SMS and Data Packs crashing which has prompted others to reduce their prices also to a considerable extent which is almost 80% less when compared to their earlier peak pricing.
With RIL planning to introduce its own feature phone which offers unlimited calls and internet for the next 3 years at a nominal cost of Rs.153 per month with a refundable deposit of Rs.1,500, the war is set to intensify. Both TATA Tele and RIL declined to comment on the speculation.