However, telecom experts suggested that unbundling of services and infrastructure will bring in healthy competition in the telecom sector. In their view, segregation of services in different layers will reduce the outsourcing cost and will allow more players to enter the market. This will also help to reduce the situation of abuse of dominant position by any single operator.
Apart from this, spectrum acquisition is also one of the important factors determining competition in the telecom sector. The average spectrum holding for an Indian operator is 31 MHz which is very low as compared to the global average that counts around 50MHz. Thus, it can be said that in the upcoming days where 5G technology is awaiting to begin in India, the operator who will have a strong spectrum acquisition will have a larger consumer base and dominant position in the market.
Merger and Acquisition under the telecom sector are not something new. Previously, the industry has seen some of the infamous mergers like the Vodafone-Hutch merger in 2007, Reliance- Infotel merger, Reliance- Aircel merger, and many more. Recently, a merger was effectuated between two of the top-notch telecom entities, i.e., Vodafone and Idea. One of the probable reasons behind this merger could be the surging interest of the consumers towards the Jio. However, considering the current situation, where only three major entities are left in the market, any further merger may result into duopoly or monopoly in the market which can be proved a deterrent for the telecom sector.
Lastly, it is important to discuss the non-price competition aspect in the telecom sector i.e., data privacy of the consumers. A dominant player in the market has a large consumer base that can easily take the advantage of by cross-linking the sensitive information of the consumers to the other services to create a profitable spear for them. One of the probable solutions for the same is strict data protection laws in India, which the country is still waiting.
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