India could move to 2 dominant telcos in Airtel, Jio

New Delhi: Despite Vodafone Idea giving guarantee, the telcos market is seen gravitating towards a two-player dominant market with Bharti and Reliance Jio.

According to a research note by BofA Securities, “We view SC verdictas negative for Vodafone Idea as it stated it doesn’t have money to give bank guarantees”.

“Even in a scenario VIL gives guarantee, we see telcos market gravitating towards a dominant two player,” the report said.

“We await to see if VIL promoters (Vodafone PLC and Birla group)provide guarantees. Their current stance is no incremental investment in the near-term. In this scenario, even if they give guarantee, potentially the India telcos market could still gravitate towards a dominant two player market with both Bharti and Jio (subsidiary of Reliance industries).