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=6JcfX3H9

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/2018/12/10/zee5.jpg?itok=RAIo1qRf
ZEE5 introduces special subscription packs for kannada audience

Following through on its vision of becoming the largest multi-language entertainment OTT platform, ZEE5 announced its special subscription packs for the Kannada speaking audience.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/10/eros.jpg?itok=5BVe8Lhw
TV Se Pehle Manmarziyaan & Happy Phirr Bhag Jayegi get digital premiere on Eros Now

Eros International PLC (NYSE: EROS) (“Eros”), a leading global company in the Indian film entertainment industry, announced today that Eros Now

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/10/ze.jpg?itok=6fqgYc4c
ZEE5 launches 8 new Tamil originals

ZEE5 announced a line-up of eight Originals to strengthen its Tamil content offering – this will be a combination of web series as also movies.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/10/mathews.jpg?itok=tWN7yiZG
5G to challenge 4G services: Jio President

With time, third generation services (3G) were replaced by fourth generation services (4G) and Reliance Jio played a vital role in the transforming phase.

iWorld Telecom
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/10/anat.jpg?itok=lcVDXeQ7
Myntra CEO Ananth Narayanan quits

Myntra’s chief executive officer (CEO) Ananth Narayanan has resigned and Flipkart executive Amar Nagaram will head Myntra, according to a report by Livemint.

iWorld e-commerce
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/07/dhanbad.jpg?itok=UsVaq8ob
Crime, Camera, Action like never before...

Dhanbad Blues – hoichoi's latest Original revealed its poster on 5th December which had veteran actor, Rajatava Dutta

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/07/zee5.jpg?itok=5tpEwmGW
ZEE5 announces partnership with Zeasn

Zee Entertainment Enterprises Ltd’s digital entertainment platform, ZEE5, today announced a key strategic alliance with home digital entertainment service provider, Zeasn.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/07/eros.jpg?itok=rzOkdT4P
Eros Now Begins Production of Original Series FLESH starring Swara Bhasker

Eros International PLC (NYSE: EROS) (“Eros”), a leading global company in the Indian film entertainment industry, announced today that Eros Now, its cutting edge digital over-the-top (OTT) South Asian entertainment platform, has launched another intriguing and compelling original web series, FLESH...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/12/07/amazon.jpg?itok=6QwaYj35
OnePlus 6T customer from New Delhi becomes the first-ever ‘OnePlus Lucky Star’

Amazon.in, in association with OnePlus, the leading premium smartphone maker announced its unique ‘OnePlus Lucky Star’ campaign last week to celebrate the fourth anniversary of their partnership.

iWorld e-commerce

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories