A short notes on merger of vodafone and idea

1. MERGER OF VODAFONE & IDEA

2. COMPANY PROFILE OF VODAFONE & IDEA
Idea cellular limited-
•
Legal form: Public limited company
•
Industry: Telecommunication
•
Main product: SIM cards,
Telecommunication
Services, Wireless broadband
•
Headquarter: Mumbai India
•
Revenue: 354 billion (2016)
•
Members: 193 billion (February 2017)

3. MERGER OF VODAFONE & IDEA
WHAT IS MERGER?
A merger is a corporate strategy of
combining different companies into a single
company in order to enhance the financial &
operational strengths of the organization.
e.g. Vodafone and Idea

4. The U.K.’s Vodafone and Adiyta Birla group firm Idea cellular
are likely announced by Feb. 25 ,will create India’s largest
telecommunication firm.
What the Vodafone and Idea subscribers can expect:
1.The name of combined listed company will be change.
2.Once the merger completes , people using the idea and Vodafone SIM
cards can expect better coverage in cities and towns.
3.Consumers can expect more diverse services after the merger of
Vodafone and Idea.
For example. Airtel offered Wynk app and Airtel money etc .and jio focus
on allied service, entertainment & various app.
MERGER OF VODAFONE & IDEA

5. Important thing about merger
1. Create India’s biggest telecom
services provider with a customer
base of over 394 million. Which is
more than Bharti Airtel. Airtel is the
largest telecom operator with
263.35 million mobile subscribers.

6. SUBSCRIBER IDEA AND VODAFONE

7. 2.According to a report
Vodafone-Idea combined
entity would have 43%
revenue market share as
against the 32.84% of Bharti
Airtel currently and 13% for
Reliance jio by 2018-19

8. 3. After announcement of
merger Vodafone's stocks
jumped 3% and Idea shares
soared more then 27% in
India.

9. Benefits of merger
1. A merged entity will also have reduced
financial challenges, which will encourage it
to spend more on quality of service.
2. Vodafone and Idea-No.2 & No.3, respectively –
will become the No. 1 players in the Indian
telecom market, pushing the present No.1
Bharti Airtel to No. 2.
3. It will beneficial for the telecom industry, the
government as well as consumers.

10. 4.Customers will also benefits from
better infrastructure, better
services and better tariffs of the
combined entity.
5.Together Vodafone and Idea will
have 400 million customers, and
will combine towers , payment
banks, and wallets.

11. 3G/4G SPECTRUM SHARE

12. MERGER FACES MAJOR HURDLES
- SPECTRUM SHARES –
According to TRAI rules that spectrum
holing should not be higher then 50% in
each band individually. So according to
experts, the combine will breach the
spectrum capacity in at least five
circles. This means the merged entity
would have to sell the excess spectrum
to the competitors such as Airtel.
-Revenue market share-

13. thank you……..
Conclusion: