Airtel Might Bounce Back to Top Position in Revenue Share After Tata Tele Acquisition

Bharti Airtel is no more the leading telecom operator in India both in terms of subscriber market share and revenue market share (RMS). The crown, which is now held by the newly formed Vodafone Idea Limited (VIL) will likely be taken away by Bharti Airtel in the next two-three quarters, albeit only in terms of Revenue Market Share. Airtel is inching towards the closure of Tata Teleservices acquisition which will boost the telco’ subscriber base and revenue share in some circles. Airtel’ subscriber base might go past 370 million, but it will still be lower than VIL’s 408 million user base. Having said that, the newly merged entity of Vodafone and Idea Cellular, according to analysts will lose the ground as they’ll be busy in the integration process.

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Airtel to Regain its Top Position in Revenue Share

According to Rohan Dhamija, partner & head of India & Middle East, Analysys Mason, said there’s practical evidence that when two large telcos merge in a market, the “combined entity loses about 200 basis points of RMS” during post-closure, network integration. But in the case of Vodafone Idea Limited, the loss will be even bigger, according to the analyst.

According to the Telecom Merger and Acquisition rules, the combined RMS of a merged entity and subscriber market share should not be over 50% in any circle. And Vodafone Idea Limited have to comply with these M&A rules. VIL breaches 50% RMS cap in four telecom circles- Maharashtra, Kerala, Gujarat and Haryana.