Telenor ASA (OB:TEL) has approached Aircel Limited and Reliance Communications Limited (NSEI:RCOM) to explore a merger via share swap, as consolidation grips the Indian airwaves, said three executives aware of the matter. Telenor has expressed its willingness to combine its business, customer base plus spectrum with the merged Aircel-RCom entity, even though the spectre of the apex court looms large on the Indian operations of the Malaysian telco. “Discussions among the three had started around last Christmas but it has been in a limbo for the last few weeks due to the Supreme Court shadow over Aircel's local operations.

By the end of this week, there will be clarity on that front. If the court decides to quash the Aircel license, then even the bigger Aircel-RCom merger will collapse,” said an executive aware of the ongoing discussions. “Aircel has been saying that its operations are ring fenced but a green signal from the court will kick.

Telenor and RCom spokespersons declined to comment while mails to Aircel went unanswered till the time of going to press.