With consolidation becoming a reality and the Indian telecom sector set to have just three private mobile players soon, network equipment providers such as Nokia and Ericsson are seeing it as an opportunity. They say healthy operators are good for their business. This is because the mobile operators need to invest heavily in infrastructure to tackle the immense traffic of data, which is growing at over 40 per cent annually. “Overall I do feel that from network vendor’s perspective, it is a good sign. Maybe in the short term, we will have some impact, but in the longer term, we will have more healthy operators, and that’s good for us,” Sanjay Malik, India Head of Nokia told Business Standard when asked about consolidation in the telecom market. Analysts say the sector is heading towards a three-player oligopoly with Bharti Airtel, Vodafone-Idea Cellular, and Reliance Jio controlling 95 per cent of the revenues. State-run players BSNL and MTNL will also be there. High spectrum fees and the entry of Reliance Jio are the key reasons for consolidation. High spectrum prices marginalised the smaller players, creating space for the larger players who could pay for it.
Source: Business Standard