MUMBAI: On 27 June, global analyst firm CCS Insight announced the launch of its new report focused on the development of the Indian telecom industry.
The report - India: Halcyon Days Ahead in a Four-Operator Market - highlights the history, dynamism and consolidation of the Indian telecom market, revealing that:
A total of 68 per cent of leading telecoms executives surveyed predict that India will consolidate to a four-operator market
Just over half of respondents to a CCS Insight survey think that Vodafone will still be operational in India in five years' time
Market consolidation will be a positive outcome for network operators, consumers and manufacturers of infrastructure and handsets
India's population of more than 1.25 billion people represents an enormous market for mobile communications. It has attracted billions of dollars of investment from domestic and international companies over the past 20 years and, with the consolidation process in India now moving at a rapid pace, it has the potential to bring an end to two decades of market chaos.
The report is written by CCS Insight senior adviser Tony Worthington, the former Global Head of Telecoms, Media and Technology at Standard Chartered Bank. Tony has been involved in the Indian telecoms industry for over 20 years.
He notes that "the consolidation process in India is now well under way, and the main uncertainty seems to be whether the Ambani brothers — one of whom owns Reliance Communications, and one of whom owns Jio - will be able to live with a merger between the two companies. Most of the survey sample seems to think that, ultimately, they would".
CCS Insight CEO Shaun Collins adds, "This report provides some interesting thoughts for consumers, handset providers and mobile operators in India. Consolidation is a reality for operators across the globe and there's a history of instability in the Indian market, so we're excited to see the growth and evolution of this sector. CCS Insight looks forward to working with its valued clients in considering the future implications of consolidation in India, fuelled by the mergers of Vodafone and Idea Cellular, Reliance Communications and Aircel and by the ambitions of Jio".
