Idea, Aircel, Spice in merger talks: Report

MUMBAI, INDIA: Aircel Cellular Ltd. is in talks to merge with Idea Cellular Ltd. and Spice Telecom, an Indian Financial newspaper said today, citing industry executives close to the negotiations.

Idea, Spice and Aircel planned to merge to create "a pan-Indian presence" to compete with larger players, the paper said.

One executive at Aircel - majority-owned by Malaysia's top mobile phone firm Maxis Communications - confirmed the talks, the paper said.

Idea, India's fifth-largest mobile services firm, listed earlier this year, while Spice, which is 49 percent owned by Telekom Malaysia, plans an initial public offering.

A spokeswoman for Idea did not immediately return calls.

Last week, a Spice official said reports that it would merge with larger rival Idea were speculative.

India's mobile market, the world's fastest-growing, is dominated by Bharti Airtel Ltd., Reliance Communications Ltd., state-owned Bharat Sanchar Nigam Ltd. and Hutchison Essar.