2. Background – Vodafone
India
Vodafone India is the third largest mobile network
operator in India by subscriber base, after Airtel and Relian
ce jio with a market share of 18.42%.It is headquartered in
Mumbai,
Maharashtra. It has approximately 200 million customers
as of August 2016.
CEO: Sunil Sood
Headquarters: Mumbai
Revenue: 425 billion INR (US$6.3 billion, 2015)
Founded: 1994
Parent organization: Vodafone
Subsidiaries: Vodafone Mobile Services Limited, more
3. Background– Idea cellular
Idea Cellular is an Indian mobile network operator based in
Mumbai, Maharashtra. Idea is a pan-India integrated GSM operat
or offering 2G,3G and 4G mobile services. Idea is India’s fourth lar
gest mobile operator by subscriber base.
Customer service: 12345
CEO: Ravinder Takkar
Headquarters: GANDHINAGAR,GUJARAT
Founded: 1995
Revenue: 354 billion INR (2016, US$5.3 billion)
Parent organizations: Aditya Birla Group
Founders: Aditya Vikram Kumar Mangalam Birla
4. Merger details
• On 20 march 2017,Vodafone India and idea cellular agreed to
merge and create a biggest telecom company in India with a
customer base of over 394 millions.
• Vodafone India own 45.1 % entity after transferring 4.95 to the
promoters of idea cellular for Rs of 3874 crore in cash post the
merger. The promoter of idea group will hold 26% and the rest of
shares will be owned by public so we can say that it is an 50 50
partnership.
Need of Merger
• To became biggest Telco sector in India this merger is required
• Also the market share and the number of customers also
increased through this mergers which ultimately provide boost
in the revenue of both of the firms.
• It also helps in reducing the effect of tariff war that generally
occurs in the Telco market.
• Also with this merger both company enjoy benefits in term of
network and also in terms of services.
On 20 march 2017,Vodafone
India and idea cellular agreed to
merge and create a biggest
telecom company in India with a
customer base of over 394
millions.
5.
6. The brand integration
marks the completion of
the largest telecom
merger in the world.
Vodafone Idea launched a unified brand
which will bet big on digital to attract
customers and stem exits to rivals Bharti Airtel
and Reliance jio.
India is the 2nd largest telecom market and the la
rgest data consumer, globally with 1.2 Bn
Indians.
7. POSITIVE
IMPACT
OPPORTUNITY
NEGATIVE
IMPACT
Idea Cellular had a more
rural reach while Vodafone
was popular in the urban
areas.
Both vodafone and idea
have active buyer and
sellers.
Their merger can lead to
less choice for consumers
for plans and subscriptions.
Vodafone Idea said that
they have engineered a
network with 5G-ready
technology elements
Both vodafone and idea get
more strong financial base.
Their merger can lead to job
losses or unemployment.
Vodafone Idea has
accomplished the world’s
largest network integration
in a record time.
Have a great chances to
capture great market share.
Both firm has different
mindset and strategy which
cause clashes.
8.
9. •The Supreme Court on Tuesday gave telcos a 10-year window to
pay their balance adjusted gross revenue (AGR) dues of over
Rs 1.4 lakh crore, beginning with an upfront 10% payment by
March 31, 2021, and the rest in 10 annual instalments ending
March 2031.
•The Court directed the telecom department to raise AGR
demands within six weeks from telcos for traded spectrum, and
asked the National Company Law Tribunal to decide
within two months if spectrum could be sold during
the insolvency resolution process to settle the dues of
creditors of bankrupt telcos.
SOME IMPORTANT POINTS