iWorld

DoT gives conditional green signal to the Vodafone Idea merger

Vodafone Idea Ltd will have 37.5% revenue market share and 39% customer market share

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2018/07/10/vodafone.jpg?itok=x9TjyX8d

MUMBAI: The Department of Telecommunications (DoT) has conditionally approved the merger of Vodafone India with Idea Cellular, the largest M&A deal in the sector, which will displace Bharti Airtel from the top spot after over 15 years. 

The merger is expected to give a breather to both the debt-ridden firms, from cut-throat competition in the market where margins have hit rock bottom with free voice calls.

“DoT has cleared the Vodafone-Idea merger today. They will have to meet conditions for final approval,” a source told the Press Trust of India, as per a report. The department has asked Idea Cellular to pay Rs 3926 crore in cash for Vodafone spectrum and furnish a bank guarantee of Rs 3342 crore, the source added.

DoT’s conditions have been fortified after two rounds of legal opinion. The merger will result in a new entity, Vodafone Idea Ltd, which is expected to be better placed to take on competition from Reliance Jio Infocomm and Bharti Airtel. On their own, Idea and Vodafone have struggled to take on Jio and Airtel, widening their losses and losing revenue and subscriber market share. 

Together, Vodafone Idea Ltd will have 37.5 per cent revenue market share and 39 per cent customer market share, or about 440 million subscribers, making it a stronger entity.

The Aditya Birla Group has the right to acquire up to a 9.5 per cent additional stake from Vodafone under an agreed mechanism with a view to equalising the shareholdings over time. Birla is proposed to be the non-executive chairman of the merged entity and Balesh Sharma as the new CEO. Idea's chief financial officer Akshaya Moondra will head the financial operations of the new entity as its CFO. Ambrish Jain, currently the deputy MD at Idea Cellular, is set to become the new chief operating officer.

Vodafone will own 45.1 stakes in the combined entity, while Kumar Mangalam Birla-led Aditya Birla Group would have 26 per cent and Idea shareholders 28.9 per cent.

Vodafone Idea Ltd will be capable of building substantial mobile data capacity, utilising the largest broadband spectrum portfolio with 34 blocks of 3G spectrum and 129 blocks 4G carriers across the country.

Idea and Vodafone are separately paying rental for 6,300 mobile sites which will be synced for the merged entity in two years.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/03/20/zee5.jpg?itok=i2Zre2d7
ZEE Tamil, ‘Yaman’, ‘Vadacurry’ and more…the Best of Tamil content now available EXCLUSIVELY on ZEE5 in malaysia!

Recently launched streaming platform ZEE5 today officially announced that, starting 1st April 2019, ZEE’s much-loved channel ZEE Tamil will stream EXCLUSIVELY on the platform for audiences across Malaysia.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/03/20/simba.jpg?itok=Pvsz4RU7
ZEE5 set to premiere Simmba - the biggest blockbuster of the year

In another summer surprise for its viewers, ZEE5announces world digital premiere of SIMMBA - the biggest entertainer of the year.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/03/20/Reed-Hastings.jpg?itok=Pml9GW4a
Netflix CEO Reed Hastings on competition and content creation in India

With Amazon flexing its muscle and soon to be Disney-owned Hotstar in the fray, the Indian OTT market is super competitive and exciting, feels Netflix CEO Reed Hastings. "There is also lots happening on Amazon, and on Hotstar, which is now going to be owned by Disney... It's a super competitive,...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/03/20/gautam.jpg?itok=6EkGRIcB
MX Player’s Gautam Talwar on content plans and digital measurement currency

The latest OTT entrant Times Internet-owned MX Player recently entered the space with five original series on the back of an ad-supported business model. To keep consumers engaged, it aims to launch five to six shows each quarter. While the platform is already working closely with advertisers, it...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/03/19/hotstar.jpg?itok=lr8DQzBn
Hotstar to disrupt online video subscriptions with Hotstar VIP

Hotstar, India’s leading video streaming platform, launches ‘Hotstar VIP’ - a subscription that offers audiences the best of content at just INR 365 per year.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/03/19/netflix.jpg?itok=aSXRSjHA
Netflix declines being part of Apple TV service

Streaming giant Netflix will not make its content available on Apple’s upcoming video offering.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/03/19/google.jpg?itok=c7IyZdje
IPRS grants music license to Google for India

The Indian Performing Right Society Limited (IPRS) has granted a license to Google, enabling the company to utilise IPRS members’ Indian works repertoire in India across YouTube and related services.

iWorld Social Media
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/03/19/nazaraaa.jpg?itok=jKlqTZYb
Nazara Technologies, Delta Corp to invest Rs 40 cr in HalaPlay

Nazara Technologies Ltd and Delta Corp Ltd, which is India based casino gaming company, together will invest Rs 40 crore as part of Series-A funding round in an online daily fantasy sports platform, HalaPlay.

iWorld Gaming
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/03/18/kubrra.jpg?itok=LQ-03-af
Kubrra Sait to host an interactive Bollywood quiz show on Facebook

Internet's latest sensation, Kubbra Sait is all set to host Jhacaaash, an interactive Bollywood quiz show on Facebook Live.

iWorld Social Media

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories