Vodafone India and Idea Cellular Merger Will be Completed by March 2018: Report

Telecom operators Vodafone India and Idea Cellular announced a merger earlier this year due to the cutthroat competition in the Indian market. Back then, both the companies admitted that the merger will be completed in six quarters. Today, a new report cites that the merger deal is expected to be completed by March 2018, as all regulatory approvals are likely to be achieved by then.

Vodafone-Idea-Cellular-merger

A report from PTI says that “There are only two permission left in the amalgamation scheme of the Idea and Vodafone. It should be completed by end of the current financial year.” The source of the publication, however, chose to be anonymous. Also, the publication reached out to Vodafone and Idea; unfortunately, they’re yet to respond.

Currently, both the operators are preparing to put the merger application in front of National Company Law Tribunal (NCLT), which will be followed by the approval of Department of Telecom (DoT).

“Idea Cellular will hold a meeting of shareholders and creditors on October 12 to seek their approval for the amalgamation of Vodafone India’s business with itself,” further added the report.

This meeting of equity shareholders, secured creditors and unsecured creditors to take in Gandhinagar, and it will be convened with the direction of the NCLT bench at Ahmedabad.

Already, the proposed merger between Vodafone India and Idea Cellular has received a nod from the Competition Commission of India (CCI). If the merger secures all the necessary approvals, then the new operator will become India’s largest telecom operator with just over 400 million subscribers and 40% revenue market share.

The merger is equally important for both the telecom operators because they have started losing subscribers in a big number. According to Trai data, Vodafone lost 2,404,807 customers, followed by Idea Cellular with 2,898,508 subscribers. That said, industry leader Bharti Airtel also lost some subscribers, but not by a huge margin.

Both the operators are not launching any new tariff plans in recent times, which is the reason why they’re losing subscribers. Hopefully, after the merger, both the operators can up the game and launch new tariff plans. Idea and Vodafone are yet to announce the name of the yet-to-be-merged entity.

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19 Comments on "Vodafone India and Idea Cellular Merger Will be Completed by March 2018: Report"

 

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Yogesh
October 4, 2017 4:44 pm 4:44 PM

Received this message today from Idea Maharashtra
We are happy to inform you that additional 4G spectrum has been allotted to us by DoT on 29-Sep-2017 and this will be deployed in coming few weeks. This will nearly double our 4G capacity for a world class 4G experience.

Abhishek
October 4, 2017 4:40 pm 4:40 PM

Today Vodafone launched 3G in my village but no 4G. My village already has idea 4G so I guess Vodafone will never launch 4G here.

Aqib
October 6, 2017 10:07 am 10:07 AM

Area name?

Abhishek
October 6, 2017 11:59 am 11:59 AM

A small village called Sanoor in Karnataka.

Mandar Sherbet
October 4, 2017 9:45 am 9:45 AM

Considering the spectrum assets of the Joint entity and also the large subscriber base, Vodafone-Idea have a good chance of strengthening their position in the market after completing the merger and then re-aligning their networks to provide wider 3G as well as 4G coverage with higher capacity. The network re-alignment might take anywhere between 6 to 12 months to start showing it’s effect on the customer experience side. But I am fairly positive that they will succeed.

Nikhil
October 4, 2017 11:39 am 11:39 AM

After a long time?????

Mandar Sherbet
October 5, 2017 10:27 am 10:27 AM

Yes. Unfortunately the quality of discussions happening in the comments has gone down. And the huge number of new posts pushing even recent posts outside the home page has caused loss of connectivity in the discussions.

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