The Department of Telecommunications (DoT) is likely to approve on Monday the merger of Vodafone India and Idea Cellular that will create the country’s largest mobile service operator with proposed name of Vodafone Idea Ltd.
“DoT is expected to clear the Vodafone-Idea merger on Monday. The certificate will be handed to them,” an official source told PTI.
Idea and Vodafone have decided to combine their operations to create the country’s largest telecom operator worth over USD 23 billion (or over Rs 1.5 lakh crore), with a 35 percent market share and a subscriber base of around 430 million.
Also Read: Airtel gives Amazing Offers of 2 GB per day Data Plans
The proposed merger is expected to give a breather to both debt-ridden firms Idea and Vodafone, from cut-throat competition in the market where margins have hit rock bottom with free voice calls.
The combined debt of both the companies is estimated to be around Rs 1.15 lakh crore.
“The merger will be taken on-record after Idea furnishes required bank guarantee and gives an undertaking of owning the liabilities of Vodafone India that may arise in future,” the source said.
Post Your Comments