March 2017
11:36 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.

Bank of Baroda raises Rs 1,000 cr via bonds
CCI clears 15% stake purchase in Centrum Direct
BMB to be merged with SBI
Sensex, Nifty may open flat tracking Asia, G20 impasse on trade
LeEco to sell Silicon Valley site amid cash crunch: report
Bajaj to launch a new sub-500 cc motorcycle under Rs 2 lakh in India by June 2017
Toyota Corolla Altis Facelift Launched In India
US Federal Reserve raises interest rates
NPA formation showing declining trend in March qtr: Jaitley
'Indian economic growth could boost US exports'
Blackmoney: I-T prosecution action triples this fiscal
Google in talks with China to stage a comeback: report
Two-wheeler sales to close FY17 with 7-8% growth: Report
CR introduces rail ambulance
Mark Zuckerberg, Harvard Dropout, Will Finally Get His Degree
SBI justifies penalty; says need money to bear Jan Dhan costs
Maruti's Vitara Brezza crosses 1 lakh sales
Trump pledges $1 trillion to rebuild infrastructure
ONGC may acquire HPCL in Rs 44,000-cr deal
CCI rejects complaint against Great Eastern Energy Corp
"Frustrated netizens criticize senior film makers like me"
 Veteran Malayalam film maker Sathyan Anthikkad had to endure harsh criticisms from online platforms following the release of his latest movie 'Jomonte Suvisheshangal'.  
Renji Panicker delighted over the success of 'Raees'
Jackie unbeatable, never tired: Sonu Sood
Hrithik Roshan inspired by 'Raees'
Mundrothuruthu: A Disappearing Fertile Island
 Mundrothuruthu is an island Village in Chittumala Taluk in Kollam District of Kerala State, India. It is today a village now on the verge of sinking, getting swallowed by water and disappearing from the face of the earth.
Pregnant women constrained to give birth on public road sides
Infants deprived of life due to feeble health of mothers
Wailing songs of death pervade Attappady
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.