January 3, 2026 07:16 AM IST First published on: Jan 3, 2026 at 07:15 AM ISTTelecom and aviation were amongst the most robust success stories in the post liberalisation era, transformed by the entry of several new private players. But today, both sectors are characterised by market concentration. The aviation sector in India is dominated by two players — IndiGo and Air India. In the telecom sector, two strong private players —Jio and Airtel — account for around 75 per cent of the market. Vodafone Idea, which is a financially weak third player and partly owned by the government, occupies 16.5 per cent of the market, while state-owned BSNL accounts for just 8 per cent. As recent events in the aviation sector have also shown, this degree of market concentration has unhappy consequences. It underlines the need to facilitate healthy competition in sectors across the economy. In this context, reports pointing to the possible government exit from Vodafone Idea are welcome.Vodafone Idea has been in a precarious financial position. As of December 2024, its total debt was around Rs 2.3 lakh crore, comprising AGR dues and spectrum liability. Its subscriber base has fallen from 213 million in September 2024 to 203.5 million in September 2025. A few days ago, the Union cabinet approved a relief package for the beleaguered telco, freezing its AGR dues (adjusted gross revenue) and rescheduling their payment over a 10-year period ending in FY41. Alongside providing clarity over its dues, as per a report in this paper, the government is also exploring the option of bringing in an investor, who could eventually take majority control. A new investor could infuse money into the telco to ensure its long-term viability. This is much needed. The sector would benefit from the presence of a larger number of financially strong players, and better serve consumer interest.AdvertisementThe importance of ensuring a level playing field cannot be emphasised enough. The rules of the game should be applied fairly, and to all. The telecom sector forms the backbone of the digital economy, the government needs to proceed carefully.