Vodafone-Idea merger: Intensity of competition in telecom industry to fall

If the merger happens, Airtel will be relegated to a distant second

The proposed merger moves in the telecom sector are expected to lead to less competitive intensity over the medium term. 

There are plans for Vodafone and Idea to merge; Reliance Communications, Aircel and MTS are also in the process of doing so. This would mean three major players (Airtel, Vodafone-Idea and Reliance Jio) accounting for a little over 90% of subscriber and revenue market shares in 2018, leading to better pricing power, feel analysts. 

Any merger is expected to take at least a year to fructify. Says Manoj Behera of PhillipCapital: “While the near term will see the impact of