Industry Trend Analysis - Aircel Investment A Precursor To Consolidation - MAR 2018


BMI View: Maxis' investment in Aircel is an effort to make the company more attractive to other suitors, rather than an attempt to salvage its prospects in India's competitive mobile market. Consolidation is set to accelerat e and we believe Airtel is best placed to snap up Aircel ' s mobile business.

Maxis plans to pour up to USD1.1bn into its debt-laden subsidiary Aircel after the latter's planned merger with Reliance Communications (RCom) fell through in October 2017. We belie the investment is aimed at reducing Aircel's debt pile of Aircel and making it more attractive to potential buyers, rather than improving its ability to compete in a market unsettled by consolidation and price competition.

It All Started With Jio

Everyone Is Losing To Jio
Market Share of Jio Competitors (%), Q316 and Q317
Source: BMI, operators

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