Both Tata Teleservices, which is 26% owned by Japan's largest mobile company NTT DoCoMo, and Aircel have been struggling to pare their debt - around Rs 23,000 crore and Rs 22,000 crore, respectively. Standard Chartered Bank is advising Aircel on its debt-restructuring exercise.
Sistema, on the other hand, is cash rich and would be the dominant shareholder if the three companies agree to merge. The company, which is partly owned by the Russian government and operates in India through a joint venture with Shyam Telecom, has identified consolidation as the route to growth in the Indian market.