June 2018
7:56 AM IST
News Headlines
Home   | Main News   | International  | National   | Business   | Sports   | Special News   | Feature News   | Entertainment   | About Deepika 
Idea-Vodafone Merger Creates India’s Biggest Telecom Company with 395 mn Customers
(New Delhi, march,20,2017): Vodafone and Idea Cellular today formally announced the muchanticipated merger, upping the stakes in the Indian telecom market. The merged entity will be the largest telecom company in India with 395 million customers and Rs 80,000 crore in revenue, according to moneycontrol.com.

Prior to the merger Vodafone and Idea were the second and third largest telecom players respectively, while Bharti Airtel was number one. The combined market share of 43% Vodafone has 23% and Idea 19% will catapult the new company to around 10 percentage points higher than Bharti. In addition, the base share will exceed the limit of 50 percent in at least nine circles.

As per India Ratings, the merged entity will reduce its operational cost by eliminating the duplication of spectrum and infrastructure capex. The merger is also expected to improve the combined earnings of both companies due to cost savings, mainly on network and marketing expenses, according to a Fitch Ratings report.

"The combined entity will also have a more balanced subscriber mix, as Vodafone is strong in urban areas whereas Idea focuses more on the rural mass market," the report said. With 205 million Vodafone users and 190 million Idea Cellular users this new entity will have a subscriber base close to around 395 million.

Mergers and Acquisitions in the Indian telecom sector have gained pace due to the entry of Reliance Jio’s 4g services. Reliance's investment of $25 billion and an offer of free voice and data service for six months has disrupted the pricing structure in the telecom sector. It also accelerated the pace of industry consolidation and led to the exit of many small players.

Apart from the VodafoneIdea merger, Bharti Airtel recently acquired Telenor and Reliance Communication joined forces with Aircel and is now in talks with Tata Teleservices as well.

Vodafone will own 45.1% of the new company after transferring a stake of 4.9% to the promoters of Idea and their affiliates for Rs Rs 3,874 crore in cash. The promoters of Idea will hold 26% of the company and the balance will be held by the public, according to a notification sent to the stock exchanges.

The merger is expected to be completed this year.

Xiaomi Redmi Note 4 to Go on Sale Today in India
Mukesh Ambani leads Forbes list of Global Game Changers
Petrol price cut by Rs 2.16 a litre, diesel by Rs 2.10
Nadda wants increase in manufacture of medical equipment
Jio impact: Idea reports Rs 328-crore loss in March quarter
Now, Mumbai world's busiest airport with only one runway
Reliance Jio Effect: Airtel Posts Smallest Quarterly Profit in Four Years Due to Price War
IRCTC introduces payment on delivery for train tickets booked online
SBI cuts loan rates on affordable housing
India's Royal Enfield May Be Looking To Buy Iconic Italian Superbike Maker Ducati!
RBI advises PSBs to have fair system for branch auditor appts
Lanka only leasing out oil tanks to India: Wickremesinghe
Bad debt situation not that grim, recovery hopes intact: SBI
Amazon, Flipkart line up mega sale this month
'State check posts will go under GST; excise point may stay'
State GST Bill passed by 8 assemblies in April-May: Finmin
Terror attack victims blame social media
Money laundering: Spain probes ex-HSBC executives
SpiceJet's Thiruvananthapuram-Male flight from this month
LPG price hiked by Rs 2, kerosene by 26 paisa
Concert in India: Justin Bieber excited !
 International Pop sensation Justin Bieber is thrilled to perform in India and it seems he cannot wait for his concert to begin in the country.  
Harry Potter and the Cursed Child to open on Broadway in 2018
Vinod Khanna's son remembers dad, posts nostalgic pic
Baahubali 2 takes India by storm
AIIMS MBBS Admit Card 2017 released
 Candidates who have applied for AIIMS MBBS 2017 can now download their admit cards from the official website at aiimsexams.org or mbbs.aiimsexams.org.
Applied for NEET? Here’s what you should take to the exam center
Suranga Model Water Harvesting
Rajendra Singh - The Waterman of India
Cool-headed duck becomes latest Internet sensation !
 Tigers are fierce animals. But, a tiger of Australia's Symbio Wildlife Park had to give up all his efforts to get hold of a duck.
Kalolsavam 2017: Manju steals the limelight
A sparkling gem of an artist
7 steps to beat childhood obesity
Rashtra Deepika LTD
Copyright @ 2017 , Rashtra Deepika Ltd.