Can Bharati Airtel be the Phoenix among Telecos giants ....!!!!

Can Bharti Airtel be the big beneficiary in the telecom industry. while Vodafone Idea despite being India's second largest telecom firm is in the verge of shut down. Preparation of shutting down of Vodafone idea was notified by Kumar Mangalam Birla, chairman of Birla group last week. He publicly announced that if there is no relief from government followed by Supreme court to pay huge amount , they have to shut down the operations of Vodafone idea , a joint venture between Idea and Vodafone which was merged on 31st August 2018. Vodafone and Idea has to pay Rs 44,150 crores within a time span of three months. 

          If Vodafone idea closes down their operations then competition in telecom industry will be reduced to Reliance Jio and Bharti Airtel . Reliance Jio owned by Mukesh Ambani became the dominant player in telecom industry within a year by attractive tariff plans and reduced rates and providing free data to the customers. But Closing down of Vodafone Idea will like more likely to benefit Bharti Airtel. As per the recent reports Bharti Airtel have around 300 million subscribers while Jio have around 350 million subscribers. Even in the verge of closing down Vodafone idea still have around 311 million subscribers. In this 311 million subscribers around 200 million customers are 2G customers and only 38 million uses data .7.3 % of this 311 million customers are postpaid subscribers and Bharti Airtel has a percentage of 5.6 of the customers who are postpaid subscribers and Jio don’t even have  postpaid plans . This stat is going to Benefit Bharti Airtel because Airtel only has postpaid plans while Jio only offers 4G services . Also rates of Reliance Jio has increased from 15% to 40% recently which will be considered as one of the main factors which will be in the mind of the existing Vodafone idea customers while choosing Airtel or Jio.

          Bharti Airtel is planning a customer increase of 150 million customers. Even the situation is considered beneficial to Bharti Airtel , Jio still have oppurtunities to grab half of the subscribers of Vodafone idea . Grabbing half of the customers of Vodafone idea can help Jio to achieve 500 million Subscribers.

          Along with all those benefits, closure of Vodafone idea will be a major loss for the government. If Vodafone idea closes down its operation it will be more difficult to recover the money from Vodafone idea prescribed by Supreme court. Another loss for the government is that there will be no more assured annual income from deferred spectrum payments which sums up an amount of Rs 89,180 crores with interest till 2034 (Around Rs 16,296 crores every year).