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India’s fifth largest mobile operator has applied for bankruptcy
India’s savagely competitive telecoms market has claimed a major scalp, as the country’s fifth biggest mobile operator, Aircell, has been forced to file for bankruptcy.
Aircel boasts 85 million customers across the Indian sub-continent, but has been driven to bankruptcy by the hyper competitive nature of India’s telecoms market, where revenues are being driven down by miniscule profit margins and market congestion.
Telcos in India are struggling to adapt to the introduction of ultra low priced broadband and data services from the industry’s dominant player, Reliance Jio.
Reliance Jio recently introduced a monthly voice and data tariff for just 149 rupees (£1.64) per month. This has been widely reported as being the lowest priced tariff in the industry, making India one of the most difficult markets for operators to turn a profit.
Elsewhere in the Indian mobile market, Vodafone India is desperately trying to regain its footing in the market via its planned take-over of Idea Cellular.
Aircel has been operating since 1999 but appears to be the latest victim of these ruthless market conditions. It filed for bankruptcy on Wednesday.
