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Merger of Idea Cellular and Vodafone India completed; creates India’s largest telco

August 31, 2018

The merger between Idea Cellular and Vodafone India has finally been completed, which has led to the creation of India’s largest telecom operator. Prior to the merger, the two major operators have played a pivotal role in making mobile the most popular mode of communication. The name of the combined entity will be Vodafone Idea Limited.

In terms of management and leadership, Kumar Mangalam Birla, chairman, Aditya Birla Group will serve as the chairman of the merged entity and Balesh Sharma, chief executive officer (CEO), Vodafone India will serve as the CEO of the merged company. The Board of Directors will have 12 directors in total, out of which 6 directors would be independent.

The entity would have the largest voice network in India, which would cater to over 90 per cent of the population and reach around 500,000 towns and villages. This would ensure proper connectivity and uninterrupted service for the customers.

Additionally, the subscribers would also enjoy several digital services like mobile payments, Internet of Things (IoT), etc. Vodafone Idea will also keep on investing in new and emerging digital services.

Key highlights of the merger

The entity will have a pan India revenue market share (RMS) of 32.2 per cent.

In terms of financials, the merger is expected to generate a sum of Rs 140 billion annually. This sum includes the annual operating expenses of Rs 84 billion.

The combined equity infusion would be Rs 153.5 billion (Idea-67.7 billion, Vodafone-86 billion).

The total value of the towers of both companies amounts to Rs 78.5 billion.

The total debt of the company amounts to Rs 1,092 billion.

The total subscriber base of the entity will be 408 million.

The broadband network (3G + 4G) will comprise of more than 340,000 broadband sites which would cover around 840 million people in India.

The entity will have the largest voice network with over 200,000 unique GSM sites and 235,000 km of fibre.

The distribution reach would be wider with over 1.7 million retailers and 15,000 outlets pan India for the customers.

The total spectrum portfolio will be 1850 MHz. Broadband carriers will be provided to cater to this huge spectrum.


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