Big 3 headed towards controlling 95% of telecom revenues

High spectrum fees are a key reason for consolidation in the sector

With consolidation in the Indian telecom industry accelerating over the past two years, the sector is now headed towards a three-player oligopoly with Bharti Airtel, Vodafone-Idea Cellular, and Reliance Jio controlling 95 per cent of the revenues.
 
Analysts attribute the faster pace of consolidation to factors such as very high spectrum charges and intense pricing pressure following the entry of Reliance Jio in September last year.
 
“Consolidation in the India telecom industry has accelerated over the past two years, with the top three operators gaining as much revenue market share (580bps) over FY15-1QFY18 as they did over FY10-15.