Reliance Jio effect: Tata in talks to merge with RCom, Aircel, MTS

Tata Group's telecom arm, Tata Teleservices is in initial talks with Reliance Communication for a possible merger to take on the tough competition posed by the Mukesh Ambani-led Reliance Jio. 

Reliance Communication is a Anil Ambani-run company. According to a report in The Economic Times, Tata Teleservices was in talks to join hands with the merged RCom-Aircel and MTS entity. 

The report said that this would create the country's third largest telecom entity behind the proposed Vodafone - Idea merger and Bharti Airtel. 

UK-based Vodafone Plc which runs Vodafone India, recently announced that it was in talks with the Aditya Birla Group-led Idea Cellular for a possible merger which would create a telecom giant with nearly 50% market share. 

According to the report, Anil Ambani allegedly approached N Chandrasekaran, Tata Sons' new chairman to discuss the matter. 

The entry of Reliance Jio in September last year has led the telecom sector into a consolidation mode to ensure they don't lose out to the new competition.