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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

The predatory pricing by Reliance Jio would hit smaller players such as Tata Teleservices, Anil Ambani’s RCom and Aircel as they will not be able to match Jio’s lower tariff due to lack of cash. This would, in turn, lead to a surge in mergers and acquisitions (M&As) among the players and even exits, industry sources said. “The weaker players with constrained financials will not be able to replicate Jio’s offers and hence should cede revenue share to Jio. We expect Jio to have a 10 per cent revenue share of the mobile market in five years,” said an ...