Reliance & Aircel Potential Merger - Opportunity For Airtel, Vodafone and Ideacellular


For the last 6 months, there is buzz in the market place that Reliance Communications and Aircel is joining hand to fight with big players as well as face Reliance Jio Onslaught collectively. Both the organization is reeling under huge debt and constantly losing market share. The fund constraints also put them in tight spot to innovate new products in  order to differentiate themselves.

As per the industry news, both the organization will own 50% each and company will have thousands of Crores of loans on their books. If the merger goes through then there will be major realignment will happen in both the organization and biggest loser will be employees of both the organization.

On the market competition side, both the organization is very confident that they will be better placed to ward off any competition including Reliance Jio and will gain market share. They are also claiming that their revenue market share will grow from the current level of around 12%.
In my point of view, Reliance Communications failed to increase their wireless business for the last 3 to 4 years with stagnated revenue but their debt level went beyond their control. Reliance Communications is also well known for their poor customer care.

Most of the partner working with Reliance Communications also face issues in integration due to legacy network and innovation is completely missing. The recent move by Reliance Communications to force millions of user to port on to 4G dented their image.

If the merger goes through then there will be distraction within management level of both the organizations as both the parties will be busy in realignment of business, product line, regulatory etc and that will open an opportunity of window for incumbent operators like Airtel, Vodafone and Ideacellular .

Reliance and Aircel on collective basis is having more than 60 million data user as well as around 7 to 8 Millions of prepaid userbase.

I also would like to point out that many user still remember the very poor service offered by Reliance when Mr.Mukesh Ambani launched telecom service with number of complaint on billing side and that is the reason that i have not considered Reliance Jio in the race.

All of us are talking about Reliance Jio impact on Airtel or Vodafone or IdeaCellular but missed to identify the opportunity lying in front of them. Read More

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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