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Price war to expedite M&As and exits of smaller players

Tata Teleservices, which made a loss of Rs 3,386 crore in FY16, was in talks for a merger with Telenor

Reliance Jio

ThepredatorypricingbyRelianceJiowouldhitsmallerplayerssuchasTataTeleservices,AnilAmbani’sRComandAircelastheywillnotbeabletomatchJio’slowertariffduetolackofcash.Thiswould,inturn,leadtoasurgeinmergersandacquisitions(M&As)amongtheplayersandevenexits,industrysourcessaid. “TheweakerplayerswithconstrainedfinancialswillnotbeabletoreplicateJio’soffersandhenceshouldcederevenuesharetoJio.WeexpectJiotohavea10percentrevenueshareofthemobilemarketinfiveyears,”saidan ...