M&As to boost big telcos’ revenues

MUMBAI: Top telcos such as Bharti Airtel, Vodafone-Idea combine and Jio stand to gain about 10% in terms of revenue market share within a year as fringe players merge with the bigger players, or exit the industry.

“The ongoing consolidation could further benefit top incumbents/Jio,” brokerage Morgan Stanley said in a note seen by ET, adding that over the past one year, smaller operators had lost 7-10% of the subscriber and revenue market share, respectively.

In the past one year, smaller operators have been crumbling under rising debt and fall in average revenue per user (ARPUs), especially after the entry of Jio.


Morgan Stanley said consolidation would quicken in the next one year, leading to higher ARPUs for existing players. Post-consolidation, amongst smaller players, there will be momore spectrum available in the sub-1GHz and 1800 MHz band.

RCom and Aircel hold 180 MHz of the 1800 MHz spectrum.

“Trai’s recommendation to raise the limit for overall spectrum holdings across all bands to 35% from 25% could be favourable for the top incumbent operators/Jio to augment their holdings if the spectrum is sold or auctioned,” the report said.