R Com and Aircel merger to take on R Jio, operators to bid for maximum 4G coverage
16th September 2016Category : TechnologiesPublished by :Rahul Verma Reading Time : 3 Minute News Sourced : India
After Reliance Jio took the center stage with the fastest developing telecom services, and holding crown of 4G technology, telecom companies are busy in amendments in their strategies in process of keeping consumers opting for LTE technology.
To take on the Jio's momentum, Anil Ambani-led Reliance Communications and Aircel has announced the merger for new brand and becoming fourth-largest telecom operator in the country.
R-Com will merge its wireless business and transfer it to the new title, while the standalone business will focus on the enterprise segment and data centre businesses. Both Reliance and Aircel will dilute their stake equally. Both R-Com and Maxis will hold 50 per cent each in the new entity. With 171 million subscribers and a revenue market share of over 11 per cent, the new entity will have a better shot at survival, as competitive intensity picks up.
Apart from bringing distinctively fast internet services, Reliance Jio is stretching hands for the partners for the robust network through out the country. With the goal of 100 million customers in their kitty this company formed with the strongest characteristic of being arm of the biggest conglomerate in India.
The other service providers are also zeroing their focus to counter Jio environment in telecom sector. For leading telecom operator Airtel and Vodafone this battle is serious and for this bigger decisions of rate cutting or providing additional interconnect point to Jio are on the latest decisions. But how far this battle will go as consumers are complaining about congestion in network.
Latest, seven operators along with Reliance Jio will participate in spectrum auctioning of 2,354.55 MHz of spectrum — the most ever — across seven bands, including 700 MHz band. The telecom operators are expected to bid boldly to have maximum numbers of circles and need to catch up with Airtel and Reliance Jio Infocomm.