Abstract

BBB means one billion Jan Dhan account, one billion addhar, one billion mobile phone! Indian telecom sector is too big to handle. It is world’s second largest market in telecommunications which is segmented into wireless, internet and wire line service segments. It is even supported by FDI which is now 100% instead of 74%. But due to oligopoly market structure telecom sector is a sector of financial stress too. Indian markets is not friendly with cartels or better say it is not appreciated by the government but current entry of jio has initiated contraction of telecommunication sector. Shut down of host operator or merger and acquisitions announcements is changing the face of competition in Indian telecommunication market.


mergers and acquisition are often in competition. Reliance communication already purchased Aircel the giant of south but entry of Jio threshold the purpose. May be they have not understand the corporate strategy well. In this paper we are trying to find out the conclusion of this merger as mergers either create wealth or reduce wealth. Merger of virgin communications cannot be generalized with merger of Rcom or Aircel or presently with Idea and Vodafone.


This paper talks about the current situation of Indian telecommunication sector as well as how the merger of giants, i.e. Idea & Vodafone, is going to affect the Indian telecommunication sector as a whole. We would like to see whether this merger of top two positioned telecommunication companies is beneficial for them financially as well as in capturing market? They have a strong competitor with multiple marketing strategies. Is it a correct decision to join hand with each other?