The ppt will let you know why the two telecom companies merge

1. JAGRITI SINGH
BBA BANKING AND FINANCE
AMITY UNIVERSITY MUMBAI

2. 
VODAFONE INDIA

3.  Vodafone India was the Indian subsidiary of UK-
based Vodafone Group and was a provider of
telecommunication services in India with its
operational head office in Mumbai.
 Since 2011, Vodafone launched 3G Network using
900 MHz and 2100 MHz . The first city to receive 3G
service was Lucknow in Uttar Pradesh. M-Pesa was
launched in India as a close partnership with HDFC
bank in November 2011.Vodafone India had started
rolling its 4G VOLTE services in the country under
the tag Vodafone Super Volte. Gujarat was the first
circle to receive that service.

4. 
IDEA CELLULAR

5. 
 Idea cellular were incorporated as Birla
Communications Limited on March 14,1995 and
generated a certificate of commencement of business
on August 11,1995. Its registered office was in
Mumbai, Maharashtra. Its name was changed to
Birla AT&T Communications Limited on May 30,
1996 between AT&T Corporation and Grasim
Industries Limited.

6. 
MERGER

7. 
 Vodafone Idea Limited is an Indian telecom operator with its
headquarters based in Mumbai, Maharashtra and Gandhinagar,
Gujarat. Vodafone Idea is a pan-India integrated GSM operator
offering 2G, 3G and 4g VoLTE mobile service under two brand
names Vodafone and Idea. Vodafone Idea also provides
services including Mobile payments, loT, enterprise offerings
and entertainment, accessible via both digital channels as well
as on-ground touch points, centres across the country.
 As per 31 December 2019 Vodafone Idea has a subscriber base
of 332.65 million, making it second largest mobile
telecommunications network in India and fifth largest
telecommunication network in the world. Vodafone Idea has a
broadband network of 340000 sites, distribution reach of 1.7
million retail outlets.

8. 
 Vodafone Idea Limited competes with other major mobile
operators including Airtel, BSNL, MTNL and Reliance Jio,
Tata DoCoMo- with Vodafone Idea Limitation compered
is now in process of Merging their business with Airtel,
Vodafone Idea Limited has gone far ahead of the rest of
these competitors with a Revenue Market Share of over
32.2%.
 On 19 May in the 3G spectrum Vodafone Idea Limited
paid 57.68 billion for spectrum in 11 circles. Vodafone
Idea Limited launched its first 3G services in 2011.
 As of September 2018, Vodafone Idea Limited offers 4G
LTE services on its own spectrum in all the telecom
circles.
OPERATIONS

9. 
 The goal of the merger is primarily profitability, which has
been challenged by Jio’s entry into the market.
 Profitability is primarily achieved by increasing your active
subscriber base and enduring they use network through
customer friendly plans and offer. The merger IMHO will be a
boon to customers and usher in better connectivity and
competitive offers for us. Idea isn’t just another player, they
have a huge subscriber base and strong networks. A merger is
idea land Jio will have to rethink its strategy.
 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.
 After announcement of merger Vodafone’s stocks jumped 3%
and Idea shares soared more than 27% in India.
Why Vodafone and Idea merge?

10. 
 1. Better Network
 One of the greatest strengths of the merged entity will be a more robust
ecosystem of cellur towers. This could yield better coverage than before.
The company claims that it is now largest voice network with over 200000
unique GSM sites and has 235000 kms of fibre to cover 1.2 billion Indians
(92% population). Other than that, the new entity will have large spectrum
portfolio and more broadband carriers to provide better service on 2G, 3G,
4G platforms. In the upcoming broadband tariff war, Vodafone Idea will
be ready with their consolidated network of over 340000 broadband sites
covering 840 million Indians.
 2. New Technology
 The merged entity will have a better hold on digital services which
includes Voice, Data, Mobile payments, loT, advanced enterprise offerings,
high speed and secure leased lines, digital wallets, MIMO and cloud
services. These services can be accessed via 15000 stores and 1.7 million
retail touch points.
HOW THE MERGER BENEFITS THE
CUSTOMERS?

11. 
 This merger has caused more mergers and acquisitions of other
telecom companies. The assets of Telenor India and Reliance
Communication were bought by Bharti Airtel. Tata Teleservices
customers have started migrating to the Airtel network under
an Intra Circle Roaming (ICR) arrangement. Various initiatives
have been taken by the merger entity like renewal of price due
to troublesome entry of Reliance Jio which caused some serious
imbalance. The huge number of subscriber base in India has
made India the fastest growing market and with the merging of
huge telecom players it will endow the telecom sector with
health and life. The merger provided the support in
overcoming the debt of Idea cellular and Vodafone India and
large sum of credit will be infused in the joint venture. Impact
of merger could be observed in various service providers in
terms of quality of service in telecom service.
IMPACT OF MERGER

12. 
STATISTICAL ANALYSIS

13. 
 After the merger, Bharti Airtel will be left behind by the Vodafone Idea Ltd
and merged entity will acquire the top position in Indian telecom industry
with the revenue market share of 40% with respect to Bharti Airtel 32%.
 With the disruptive entry of Reliance Jio, it was the beginning of price war
in the Indian telecom industry. Reliance Jio made an announcement that
for the start of Jio telecom services at minimum rates with the launch offer
first free for all the customers.
 With very few companies remaining in the sector, there was a higher
chance of stability of prices. Analysts are predicting a market correction of
telecom pricing and the country may see the companies teaming up to
increase the prices of all the services. With only 4 major players remaining :
Idea-Vodafoe, Airtel, BSNL and Jio (Airtel merge with Aircel, bought
Telenor and may merge with Tata), rates of these services would be
something which can be arbitrated easily. If we talk about telecom market
then it is better for the industry as a whole.

14. 
THANK YOU