DoT approves Vodafone Idea merger proposals; terms and conditions apply

vodafone-idea

After several rejection and disagreement by Department of Telecommunications (DoT) over Vodafone and Idea merger, the government has finally agreed to the proposal, which is speculated to craft the nation’s biggest mobile operator with about 35 per cent market share and nearly 430 million subscribers.

It seems the new conglomerate; Vodafone Idea Limited will throw a tough completion to Bharti Airtel, which is now the country’s biggest operator with 344 million customers at present.

A PTI report stated that a senior DoT official privy to the development confirmed that the final approval has been accorded to the merger today and the two entities will now apprise the Registrar of Companies (RoC) of the various approvals received, wrapping up the last leg of formalities.

The approval will be passed when the operators will abide by the important decisions taken by the telecom tribunal and other courts. Couple of weeks back, the DoT has already passed conditional nod for this alliance had asked them to meet the demands raised for taking merger on record, says PTI.

Both the companies are said to have done a total payment of Rs 7,268.78 crore ‘under protest’ to the government. This included Rs 3,926.34 crore paid in cash and Rs 3,342.44 crore furnished as bank guarantees.

Officials of both operator claims that this merger will form a subscriber base of around 430 million, an approx of 35 percent market share and will craft the nation’s colossal telecom operator worth over USD 23 billion (or over Rs 1.5 lakh crore).

It is confirmed that Kumar Mangalam Birla will be the non-executive Chairman and Balesh Sharma as the new CEO of the merged entity.

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