Retaining Telenor's customers could be challenging for Airtel post buyout

Proposed buyout deal a step towards consolidation in face of Reliance Jio's entry into the sector

Bharti Airtel’s proposed buyout of Telenor is a step towards consolidation in the telecom sector, which is currently grappling with Reliance Jio — the newest rival on the block.

According to analysts, both Bharti Airtel, which is the country’s largest telecom company, and Telenor will benefit from the deal.

Telenor is a marginal player in the sector and cannot sustain competition from the likes of Reliance Jio. While for Airtel, buying Telenor at about Rs 420-423 per subscriber is a good consideration, a Mumbai-based fundamental analyst said.

However, retaining Telenor India’s subscribers in today’s environment in the telecom industry can pose a challenge