With smaller Telecom Companies struggling to gain traction and lack of spectrum, we would expect select exits to continue. Sistema exited the market by consolidating its operations with RCOM, while in December, RCOM and Aircel entered into an exclusivity period for talks
to merge operations. Further, Videocon and Aircel sold their 4G spectrum assets to Bharti. Additionally, as per media reports (Total Telecom, April 11), Telenor / Uninor is considering exiting the Indian telecoms market.
We see potential for only a few more exits before auction and the Jio launch as it could be difficult for smaller telcos to obtain satisfactory bids post Jio launch/auctions.
