DoT now provided conditional nod for Idea Vodafone merger

vodafone-idea

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)

Inspite of repeated protests and rejection by the Department of Telecom, Idea Cellular and Vodafone is all set to carry out the biggest telecom alliance with an investment of Rs 7,248.78.

Confirming the same, an Idea Cellular spokesperson said to PTI, “Idea Cellular and Vodafone have made payment under protest as demanded by the DoT for the merger. Rs 3,926.34 crore have been paid in cash and bank guarantee of Rs 3,322.44 crore have been furnished.”

Further report of PTI added that the Department of Telecom gave conditional nod for merger of these companies on July 9 and asked companies to meet the demand raised for taking merger on record.

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 also speculated that this merger will offer a sigh of relief from the debt-ridden situations from the fierce competition in the telecom market, which has escalated due to excessive free voice calls. The debt of both the firms is estimated around 1.15 lakh crore. Whereas, experts are also claiming that successful merger of these operators will make Airtel lose the status of India’s biggest subscriber-based telecom operator.

It will have the capacity to provide 4G spectrum in all telecom circles of the country. According to a presentation by Idea, the combined 4G spectrum of both the companies are capable of offering up to 450 megabit per second broadband speed on mobile phones in 12 Indian markets, reports PTI.

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

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