With the economy in India struggling, an uncertain policy scenario leading up to the next elections, and a mergers and acquisitions (M&A) policy for telecom in India in the works, there's a report of a complicated three-way merger between Tata Teleservices, Aircel and Sistema, according to the Economic Times. Docomo currently holds 26% stake in Tata Docomo, while Maxis has been looking to sell its Aircel stake. Sindya Securities and Investments Pvt Ltd, promoted by Suneeta Reddy and P. Dwarakanath Reddy, of the Chennai based Apollo Group hold 26% in Aircel. Russian conglomerate Sistema holds a 73.71% stake in Shyam Sistema in partnership with Shyam Telelink. Apart from the fact that the only fun name for this combination would be AirSisTa (which is not half as funny as Batata, which the Birla-TATA- AT&T combination that became Idea Cellular was called), purely out of academic interest, let's take a look at how this rumored and unlikely three-way merger might impact the telecom map of India: 1. Mobile subscriber base Tata Tele, Aircel and Sistema (MTS) are at numbers 6, 7 and 9 in the telecom operator league table, based on the number of active connections (total connection base is immaterial). Post acquisition, AirSisTa would have an active connection base of 88.34 million, and an active-connection market share of 12.08%, behind RCOM, which has 14.93%. India's top four telcos have over 100 million active connections, and the next largest is BSNL, with 55 million. The AirSisTa combination would essentially displace BSNL, but…
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