Reliance Communications and Tata Teleservices have reportedly initiated talks for a possible merger. Reliance Group Chairman Anil Ambani has approached Tata Sons Chairman N Chandrasekaran to talk about the possible joining of Reliance Communications and the Tata Group.

RCom has already consolidated its business with Systema Shyam Teleservices, the owner of MTS services and has announced a merger with Aircel.  The deal with Aircel, however, is in jeopardy as the Supreme Court has said it will auction its spectrum if its owner T Ananda Krishnan does not appear in court.

RCom’s move is in succession of British telecom operator Vodafone Group confirming the merger of its Indian unit with Idea Cellular to create country’s largest telecom company. The merged entity of Vodafone-Idea has potential to emerge as the market leader in terms of wireless subscribers since Vodafone and Idea are in the second and third spot currently, while Bharti Airtel is number one.

If Tata Tele-Reliance Communications deal happens, RCom will be a joint entity of four telecom operators and the third largest entity in the industry with around 260 million subscribers and a revenue share of 18%.

However, to go through with the merger, first RCom will have to solve the merger problems with Aircel, and it will need multiple clearances from the Competition Commission of India.