Vodafone-Idea merged entity to surpass Reliance Jio in network capacity terms: Credit Suisse

The proposed merger of Vodafone and Idea Cellular will create a telco with 35% network capacity share in the country, surpassing Reliance Jio, which would have 31% network capacity share, according to Credit Suisse. It however added that the Mukesh Ambani-led telco would continue to lead in capacity share of data networks “by virtue of its large data spectrum holdings and exclusive 4G deployment.”

mobile-india-4G

In a note, the brokerage said that the Vodafone-Idea merged entity would command a 26% spectrum market share, and it will displace Bharti Airtel to second place. Airtel currently lead with 21% spectrum market share, followed by Reliance Jio with 17% spectrum market share.

The brokerage said that the merged entity’s spectrum footprint will be comparable with Bharti Airtel and Reliance Jio as compared to Vodafone and Idea Cellular’s individual spectrum holdings that lack 3G and 4G capabilities.

The Aditya Birla Group and Vodafone Group recently confirmed their talks to merge Vodafone India and Idea Cellular in an all-share transaction. The move is being seen as a step to counter looming threat from Reliance Jio, which is currently offering free services to its customers in India.

Both the firms have reportedly appointed consultancy firms EY and Deloitte, respectively, to conduct due diligence for the proposed merger. Credit Suisse report also noted that there would be an imbalance in the combined entity’s revenue market share (RMS) and network capacity share.

Also read: Bharti Airtel hits back at Reliance Jio for causing ‘huge loss’ to company

“The merged entity’s 35% network capacity share would be significantly behind its 42% RMS…Historically, revenue market shares have had decent correlation with capacity shares, but with the imbalance evident in the above figures, pressure would sustain on incumbents to continue to add capacity at a time when Jio has recently announced expansion plans of its own,“ Credit Suisse sad.

The proposed merger of Vodafone India and Idea Cellular would also create the nation’s largest telecom operator. A new Vodafone-Idea entity would have about 390 million users, exceeding current market leader Bharti Airtel’s 266 million, according to various estimates.

Reported By

Leave a Reply

21 Comments on "Vodafone-Idea merged entity to surpass Reliance Jio in network capacity terms: Credit Suisse"

 

Sort by:   newest | oldest

[…] Also Read: Vodafone-Idea merged entity to surpass Reliance Jio in network capacity terms: Credit Suisse […]

[…] Also Read: Vodafone-Idea merged entity to surpass Reliance Jio in network capacity terms: Credit Suisse […]

Irshan
February 13, 2017 12:15 am 12:15 AM

No wonder both players are sacrificing their market consolidating to one , on other hand jio have earned customers with its services and wide 4g attractive tariffs.

Biswadeep,Delhi
February 11, 2017 7:10 pm 7:10 PM

What will be the new entity’s name? Any news on that yet?

Kirti Khurana
February 12, 2017 11:13 pm 11:13 PM

It shall be idea probably because Vodafone India will be deconsolidated from Vodafone.

Priyanka Bhosale
February 11, 2017 6:52 pm 6:52 PM

Both Vodafone or Idea cant provide good services stand alone, dont know whether this merger is gonna be any better or just like their services stand alone! First start improving your network u both!!!

tri_vis
February 16, 2017 11:31 am 11:31 AM

Voda is good here in Gujarat circle and provide better 3G speeds & also 4G ( where present). Though most dearer (in terms of cost) from AVOID group.

Kirti Khurana
February 12, 2017 11:16 pm 11:16 PM

only thing merged will do is combine their fake inactive user base to 350+ million + their respective spectrum nothing else.
the only thing will save their fate is price point.

Nikhil
February 12, 2017 12:47 am 12:47 AM

Their 3G is good in some circles… Haven’t tested 4g yet…. Won’t be of that quality of Jio for sure

dskushwaha
February 13, 2017 3:15 pm 3:15 PM

Question of quality will come if they provide no fall back 4G network. I think none other than Jio will be able to provide it till 5G or 6G comes

Nikhil
February 14, 2017 9:14 am 9:14 AM

There is hardly any optimization of idea 4G in Maharashtra circle…… Always fall back on 3G in evening times…. Not reliable at all….

Biswadeep,Kolkata
February 12, 2017 4:00 pm 4:00 PM

Vodafone 4G & 3G is excellent in Kolkata Circle … Very very Reliable … Visited Kerala last month … Saw Idea 4G is very good there

Nikhil
February 14, 2017 9:12 am 9:12 AM

BSNL 3G rocks in kerala(no need of 4G)….10-12Mbps most of the time

Nikhil
February 14, 2017 9:11 am 9:11 AM

Let’s see whats written in store after merger of both…..

Nikhil
February 14, 2017 9:09 am 9:09 AM

Vodafone 4G in Mumbai(compared to Jio of course and BSNL 3G in maharashtra)….. Don’t know what they are up to…… I hope they launch carrier aggregation as idea is also there in Mumbai in terms of 4G…..3G is good of Vodafone though in Mumbai…..lots of customers for Vodafone….

Girish Gowda
February 11, 2017 5:55 pm 5:55 PM

In the end, Vodafone + Idea = VoId.

DrRAJESH
February 11, 2017 1:45 pm 1:45 PM

Vodafone+Idea=ideaTfone

Kirti Khurana
February 11, 2017 1:20 pm 1:20 PM

Voda+Idea could save themselves for a year or two by merging but it won’t take long for airtel & Jio to become leader again because this stunt by voda & idea is like a fish who woobles before death.
merged entity Idea have to surrender excess spectrum in 5 circles.

Nikhil
February 11, 2017 4:57 pm 4:57 PM

If they implement dual carrier HSPA+ instead of concentrating on 4G they are here in for long term….. A year after merger will be very very important for entity

Abhishek chatterjee
February 11, 2017 1:19 pm 1:19 PM

Idea start 4G sim swap in Dhanbad, Jharkhand.
got sms idea soon start 4G service in Jharkhand..

Nikhil
February 11, 2017 1:15 pm 1:15 PM

Lol… Start improving network you both….

wpDiscuz

Subscribe to our email newsletter

Web Push Notifications for sites

Recent Comments