Sunday Talk: Will the Vodafone Idea Merger Make Any Difference to the Consumers?

Vodafone Idea Limited has been operational for the last two months, and so far, we saw the newly merged entity making some changes to the tariff portfolio and merging the network. Idea Cellular is now providing 4G services in Kolkata, thanks to Vodafone’s strong presence in the circle. Vodafone is doing the same in some circles where it has less presence. As you would know, Vodafone Idea Limited is the leading operator in terms of subscriber base and revenue share. The telco started its operations with 408 million subscribers and close to 34% revenue share. But the real question is will consumers benefit from the Vodafone Idea merger?

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Better Network Quality

The combination of the assets of two of the biggest telcos in the country has led to the formation of the largest telecom entity with the most subscriber base. Keeping in mind that both the companies are strong players on a national-international level, it is undoubtedly evident that the joining hands of these two companies will mean better services for the consumers. It is our opinion that the combined cash reserve, airwaves, wireless assets and workforce will grant more power to the newly formed company to better tackle competition. Also, as we have remarked in our previous takes, a massive number of towers and sites which both the companies owned in combination will lead to the expansion of the network in the country. Notably, with this merger, the combined entity has surpassed the largest telco of the nation concerning subscriber base and revenue market share.

Better Customer Experience

The combined synergies of both the companies will also mean that Vodafone-Idea Ltd will be able to provide better services to the customers at even more attractive prices. We also think that the large combined cash reserve of the company will mean more investment in R&D thus leading to innovative products in the market. Moreover, the company will also have the buffer to provide better consumer-centric services with the combined resources.