In this competitive era, Mergers and Acquisitions have become an integral growth strategy. Over the last two decades, due to the introduction of major reforms by the government in innovation and technology, the scenario of telecom industry of India has changed drastically. In the telecom sector, mergers and acquisitions has been increasing to a great extent and companies are using it as a strategic tool for improving their revenue and efficiency. In the past ten years, Indian telecom sector has restructuring of the big shot players like Vodafone-Hutchison Essar, Reliance- Aircel etc. The country is again now ready to observe the two major prospective mergers in telecom sector, that is, merger of Airtel with Telenor and Idea with Vodafone. This paper is an attempt to analyze the strategic reasons for the forthcoming mergers of the giant players in telecommunication and its impact on market revenue share, stock price and profitability of the merged company. The impact of these prospective mergers on the other leading mobile operators are studied to examine the challenges and synergies involved in these mergers. The study is based on analysis of secondary data collected from various authentic sources.