Airtel plans to poach Vodafone, Idea customers in six circles ahead of merger

India’s leading telecom operator Bharti Airtel is reportedly planning to poach customers of Vodafone and Idea Cellular, which are in talks of merging operations in the country.

Mint on Friday reported that Bharti Airtel is planning to bring many innovative schemes and tariff plans in at least six circles where the Vodafone-Idea combined entity will exceed the 50% subscriber and revenue market limit, and as per regulations the entity will have to give up share to rival telcos to secure regulatory approval.

In case the merger goes through, revenue of the Vodafone-Idea combined entity will exceed 50% share in circles such as Gujarat, Haryana, Kerala, Madhya Pradesh, Maharashtra and Uttar Pradesh (West) that together constitute 41% of the combined revenues.

In addition to bringing new plans for these customers, Bharti Airtel, as per the report, would also want the proposed merger to be delayed as long as possible so that it gets room to bridge the gap with the combined entity.

According to regulations by the telecom regulator, Trai, a telecom operator can hold a maximum of 50% revenue share, 50% subscriber share and 50% spectrum share in each band (excluding 800 Mhz) in each circle.

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Kumar Mangalam Birla-owned Idea Cellular and Vodafone are exploring an all-stock merger deal to counter Reliance Jio and Bharti Airtel. The proposed merger of these two telecom operators will create an entity with combined revenue of Rs 78,000 crore.

Vodafone Group and Aditya Birla Group have already picked EY and Deloitte, respectively, for due diligence that includes a detailed look at the work structure.

The combined entity of Vodafone India and Idea Cellular will have a more balanced subscriber mix, as the current second largest telco is strong in urban areas whereas the Aditya Birla Group telco focuses more on the rural mass market, ratings agency Fitch recently said in a note.

Also read: Bharti Airtel’s average download speed increased nearly by two-fold to 8.42Mbps in January: TRAI

The proposed merger would also help both the telecom operators withstand intense price competition brought by Reliance Jio in the Indian telco market. The merger is unlikely to lead to increased pricing power for operators in the short term, the agency said.

Credit Suisse had also said that the merged entity would command a 26% spectrum market share and relegate Bharti Airtel to second place on this score. At present, Sunil Mittal-led Bharti Airtel leads the industry in terms of spectrum holding with a 21% market share, with Jio at second spot with 17%.

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8 Comments on "Airtel plans to poach Vodafone, Idea customers in six circles ahead of merger"

 

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Nikhil
February 18, 2017 12:06 am 12:06 AM

Disappointed with the Airtels approach… Though I am happy that Competition has just started

SC -kpa
February 17, 2017 5:54 pm 5:54 PM

If merger happens between vodafone and idea, then what will be the future of present numbers i.e. will we have to port out to other operator or they will give new sim with existing number? Please clarify.

ENAUD
February 17, 2017 7:35 pm 7:35 PM

Both will do exist and run on their respective MSC (switches). This was the case when we merger Kolkata operations and West Bengal circles into one unit. I am referring to the Golden Days of Telecom when I worked with India’s largest telecom.

Kaushik
February 18, 2017 12:49 am 12:49 AM

Ah, hence confirmed you were the same Duane Bayliss working at airtel kolkata between 2003 and 2006(07?)
No wonder you still enjoy their benefits.
For all TT readers, Duane is a former Airtel employee.
40 years old now if I am not wrong. Time really flies doesn’t it dada?

Nikhil
February 18, 2017 11:46 am 11:46 AM

Lol

karti
February 17, 2017 4:02 pm 4:02 PM

offtopic

in airtel prepaid

*call divert available ?
*when my number is switch off that time someone called me. after i switch on my phone
“now this person is reachable” sms sent to that called person ??

please review airtel prepaid in tamilnadu

i have non volte phone
in my city airtel provide 4g service ..

ENAUD
February 17, 2017 7:36 pm 7:36 PM

Yes it available. You need to activate Reverse MCA (missed call alert) service for this.

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