Although India is one of the biggest mobile markets in the world, not everyone is making money at the moment. According to Bloomberg’s report, Telenor has racked up 3.4 billion NOK ($556 million) in operating losses, prompting analysts to doubt the company’s goal to become profitable in three years.
Telenor owns 67.25% of Uninor, offering services in 13 telecom circles in India. However, at present they command only 0.95% of the market, which is obviously not enough.
Another company that could use some help is Videocon, which launched services in India in March. According to figures from Wireless Intelligence, they have around 0.3% marketshare (2 million connections) and are in the midst of looking a backing partner to drive the growth. Vodacon has spent 50 billion INR ($1.1 billion) in building the network and purchasing spectrum…
There are 15 mobile operators in India, and undoubtedly consolidation is going to happen in the next 12 to 18 months. We’ll be watching and reporting back to you, have no doubts about it.
[Via: MobileBusinessBriefing]