VODAFONE INDIA AND IDEA CELLULAR TO MERGE

 

 

Vodafone and idea will merge to become india’s largest telecom operator, as it’s customer will benefit more from better infrastructure and better services. This wouldn’t happened if reliance jio had not come with its free telecom services, as company has promised to offer free voice calls forever. While the merger would create the largest telecom company in the country, with a market share of 42%, both Idea and Vodafone will have to let go some of its customers as regulations do not allow a telecom company to have more than 50% revenue market share in any circle.

The lack of extensive 4G network is a problem for both Vodafone and Idea. Even if we combine Vodafone and Idea’s scores in our survey they still rank third after Relaince Jio and Bharti. Once Reliance Jio starts charging its customers, the dynamics of the business will change.

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Some More Things You Should Know About The Merger

  • Vodafone and Idea will be selling off their standalone tower assets.
  • Idea and Vodafone both have stakes in Indus Towers, 11.15% and 42% respectively.
  • The ongoing tax dispute will not affect the Vodafone-Idea merger.
  • Till the merger is completed, Vodafone and Idea will be operating separately.
  • Vodafone will be appointing a new chief financial officer for merged entity.
  • After the Vodafone-Idea merger, there will only be three big companies in India which as a result would lead to bigger revenues less competition.
  • Jio, India’s largest 4G network company will be facing a stiff fight.

After Idea and Vodafone will combine to become one company, then the Indian telecom sector will have 3 major players – Reliance Jio, Airtel and Idea-Vodafone who will compete against each other in India.

Do you think Vodafone and idea merger will be good for the market? share your thoughts in your comments.

 

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