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/2018/10/16/AMBANI.jpg?itok=zNibmglX
RIL close to buying majority stakes in DEN, Hathway

Reliance Industries is expected to buy controlling stakes in two of India’s largest cable TV and broadband service providers

iWorld Telecom
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/16/Taranjeet%20Singh.jpg?itok=dnumI-hj
ZEE5 appoints Taranjeet Singh asChief Revenue Officer& Business Head - New Projects

ZEE5 India, India's second largest OTT platform known for its muscle in multi-lingual content, today announced the appointment of Taranjeet Singh as the Chief Revenue Officer & Business Head – New Projects for the platform.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/16/netflix.jpg?itok=bVIQH9bf
Netflix Q3 app revenue up 90% y-o-y

Netflix's financials show it had a strong Q3 on mobile. The app dramatically observed an upswing by generating gross $243.7 million which represented a 90 per cent year-on-year increase as compared to Q3 2017. The popular streaming app has surpassed an estimated $1.4 billion in total gross revenue...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/15/avia.jpg?itok=D8QtSi-I
AVIA announces new members

The Asia Video Industry Association (AVIA) today announced that Netflix has joined as a Patron member, alongside Globe Telecom as a Corporate member, strengthening the mandate of the Association to represent the interests of companies across the broader video industry in Asia.

iWorld Telecom
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/15/coai.jpg?itok=9s-1J2pW
3 more quarters of losses for telecom industry, says COAI

According to COAI director general Rajan Mathews, the telecom sector will probably experience three or more quarters of losses, as the telcos remain under pressure due to high levies and unsustainable tariffs.

iWorld Telecom
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/15/hulu.jpg?itok=_ijK9rAv
India’s Porus Rises In the land of the Rising Sun- Japan

One Life Studios premium historical drama series Porus, which depicts the legendary warriors battle against the world’s biggest conqueror Alexander the great will now be showcased in one of the top premium OTT platforms in Japan- Hulu.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/13/Data-breach.jpg?itok=TX7OnSWg
Data of 29 mn users hacked says Facebook

MUMBAI: Social media company, Facebook, on Friday stated that hackers had accessed 29 million user data in the breach which was disclosed late last month. Facebook previously had said that 50 million users were affected due to the data breach.

iWorld Social Media
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/13/internet.jpg?itok=HaFuQsbm
No internet shutdown in India confirms Cyber Security official

A news report by international television network Russia Today shocked the world as it reported about an internet blackout all over planet earth.

iWorld Social Media
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/13/telecom.jpg?itok=cgzeksJR
Import tariffs hike to hurt telcos' network expansion: Report

The government, on Thursday, announced a plan to rein in imports and bolster a falling rupee. It will raise import tariffs on several electronic items and communication devices. The tariff hike was the second such move by the government in a two-week span according to Reuters.

iWorld Telecom

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories