Biggest ever merger is going to happen and it has been confirmed. The merger will happen by 2018 and 45% stake would go to Vodafone.
This makes them the biggest operator in telecom, followed by Airtel.
Airtel was rated the best for customer service in recent polls on twitter yet not the largest operator anymore.
If we observe and study the telecom sector, many players either have left or merged or sold off. This has come up after Reliance Jio played the big card of free voice and sms services.
Not every player in the industry could have survived that storm.
Idea and Reliance Communications aren’t much profitable businesses anyway and Reliance never recovered the losses which are in the books over the time and so is the case with Idea.
What it means for the market?
Well, it simply means that only few players will be left with intense cut-throat competition and users are going to enjoy that anyhow.
In terms of share market which has been growing gradually up after BJP’s win, the share market will keep on growing but telecom sector won’t see much growth unless next revolution – 5G happens.
I would not recommend betting on telecom sector just yet.