Airtel plans to tap Vodafone and Idea users

With an aim to tap Vodafone and Idea customers, the country's largest telecom service provider Bharti Airtel is planning new schemes and tariff plans in at least six circles where the merged entity will exceed the 50 percent subscribers and revenue market if the proposed merger goes through, Mint reported.

"Bharti Airtel plans to target Vodafone and Idea customers through a series of innovative schemes and tariff plans in circles where the merged entity will have to let go customers," a person familiar with Airtel's plans told Mint.

The report says that the telco "would also want the proposed merger to be delayed as long as possible so that it gets room to bridge the gap with the combined entity."

According to the Telecom Regulatory Authority of India rules, any telecom operator can hold maximum 50 percent revenue, 50 percent subscribers and 50 percent spectrum share in each band (excluding 800 Mhz) in each circle.

In order to counter Jio, Vodafone India and Idea Cellular are in talks for a proposed merger and it will create an entity with combined revenue of Rs. 78,000 crore.

Meanwhile, India Ratings said that consolidation in the industry will help a quicker return of pricing power. The proposed merger of Vodafone Mobile Services Limited and Idea Cellular Ltd (Idea) will be positive for the telecom industry by eliminating duplication of spectrum and infrastructure capex.

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