Vodafone-Idea merger: Consolidation good for telcos, says Former Bharti Airtel CEO

Competition in the telecom space intensifies as the second biggest telecom operator in India, Vodafone, looks to merge with the third largest telco, Idea Cellular. On the news of a possible merger between the two companies, Sanjay Kapoor, former CEO of Bharti Airtel says, consolidation is good for the industry's sustainability."When the market gets consolidated then companies are able to plough back the investments that are required to transform an industry from a voice led industry to a data-centric industry and therefore move to technology which is more contemporary," he said. According to Rajan Mathews, Director General of COAI, the merger will not have a negative imact on competition and the consumers will benefit from deep-pocketed players. He also pointed the concerns for the two companies after the merger. One being the amount of spectrum holdings in few circles, which could be breached.He further said that the trend in the telecom space is towards increased consolidation and the merger move will bring stability in that space. Telecom expert Mahesh Uppal says that the merger could face regulatory challenges but the companies can overcome them.To know more, watch video...