Under the similar rule, Reliance Jio was let go by CCI.
Actually its a good rule, If we presume AVOID merges to eliminate any competition.. what will be the fate of users.. these 3 operators have more than 75% Share.
Vodafone-Idea merger to finish by 2019; Combined entity - Vodafone Idea Ltd.
- Thread starter swatkats
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Actually its a good rule, If we presume AVOID merges to eliminate any competition.. what will be the fate of users.. these 3 operators have more than 75% Share.
Key take-aways from the merger deal
As combined entity will be jointly controlled by Vodafone & Aditya Birla Group, Vodafone will deconsolidate Vodafone India immediately
Some are saying 35% and some 43%.... What's the truth?
- Entire business of VIL and VMSL, excluding VIL's investment in Indus Towers, international network assets and IT platforms, to vest in co.
- On amalgamation of VMSL becoming effective, co shall issue shares of co to VIL equal to 47% of post issue paid-up capital of co.
- Vodafone to own 45.1% of combined co after transferring about 4.9% to promoters of Idea and/or affiliates for INR 38.74 billion in cash
- Board of combined entity will be comprised of 12 directors including 3 directors appointed by each of Vodafone and Aditya Birla Group
- Promoters of Idea, Vodafone have right to nominate 3 directors each
- Promoters of Idea have sole right to appoint chairman
- Vodafone has right to appoint CFO of company
- Appointment of CEO, COO will require approval of both promoters of Idea and Vodafone
- Promoters of Idea have right to buy up to 9.5% additional stake from Vodafone under agreed mechanism with view of equalising shareholdings over time
- Agreement contemplates completion of proposed amalgamation with a period of 24 months
- Until equalisation is achieved, voting rights of additional shares held by Vodafone will be restricted and votes will be exercised jointly
- Idea to contribute all of its assets including standalone towers with 15.4k tenancies and 11.15% stake in Indus Towers
- Vodafone to contribute Vodafone India including standalone towers with 15.8k tenancies but excluding 42% stake in Indus Towers
- Vodafone will contribute 25 billion rupees more net debt than Idea at completion
- Post-closing, combined company will be reported as a JV by Vodafone and accounted for under equity method
As combined entity will be jointly controlled by Vodafone & Aditya Birla Group, Vodafone will deconsolidate Vodafone India immediately
Some are saying 35% and some 43%.... What's the truth?
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Darth_Infernus
Contributor
This indicates Vodafone will eventually buy out AB group and the rest of the stuff is face-saving measures by AB group to ensure their remaining businesses are not affected.
Looks like M&As are hot, with Tata merging with Airtel. Sadly, Reliance and Aircel did not work out!
So with Tata merging with Airtel, apparently, this includes Tata's enterprise services as well
There are rumours floating around that RCom will be snapped up by Jio not unlike Microsoft & Nokia, and Aircel too might go the same way, though I think Jio might sell off the unwanted spectrum that Aircel has (non B3/B5/B40) to either the Airtel-Tata, Vodafone-Idea or other interested parties?
In the end, we might be left with
Airtel/Tata, Vodafone/Idea, Jio/Rcom/Aircel and the govt PSUs - MTNL/BSNL - they too might be merged?
The telecom ministry (DoT) today approved the merger of Vodafone India and Idea Cellular that will create the country’s largest mobile services operator, an official source said.
“DoT has cleared the Vodafone-Idea merger today. They will have to meet conditions for final approval, the source said.
The department has asked Idea Cellular to pay Rs 3,926 crore in cash for Vodafone spectrum and furnish a bank guarantee of Rs 3,342 crore, the source further said.
The combined operations of Idea and Vodafone will create the country’s largest telecom operator worth over USD 23 billion (or over Rs 1.5 lakh crore), with a 35 per cent market share and a subscriber base of around 430 million.
The combined debt of both the companies is estimated to be around Rs 1.15 lakh crore
https://www.thehindubusinessline.co...ne-merger-with-conditions/article24372730.ece
“DoT has cleared the Vodafone-Idea merger today. They will have to meet conditions for final approval, the source said.
The department has asked Idea Cellular to pay Rs 3,926 crore in cash for Vodafone spectrum and furnish a bank guarantee of Rs 3,342 crore, the source further said.
The combined operations of Idea and Vodafone will create the country’s largest telecom operator worth over USD 23 billion (or over Rs 1.5 lakh crore), with a 35 per cent market share and a subscriber base of around 430 million.
The combined debt of both the companies is estimated to be around Rs 1.15 lakh crore
https://www.thehindubusinessline.co...ne-merger-with-conditions/article24372730.ece
N
NotMyRealName
Haha, you think if say idea had 75% coverage/quality and voda had 75%, combined they would now be something like 90%+ ??
My guess is they will drop to 50%. Yes, worse. Because all these idiots want to do is make money without giving the customer what the paid that money for in the first place.
My guess is they will drop to 50%. Yes, worse. Because all these idiots want to do is make money without giving the customer what the paid that money for in the first place.
In order to make the merger cost effective, the first thing they will do is reduce the number of towers....
TLDR; Both brands will continue to operate under the same names but finances and infrastructure is under one roof.
The company will Fire the excessive head count in the above sections only.
For the customers, They will get good coverage as they (Either) one of them will use the others towers and Unnecessary (Duplication) towers sites shall be Shut-Down!
If Idea Signal was weak in your area & Vodafone is good, you will get coverage from Vodafone ~~~~ Vice-Versa!
If both have poor coverage, May God Save you!
Subscribers (Crores):
Vodafone Idea Ltd - 40.8 crores
Airtel - 34.4 crores
Jio - 21.5 crores subscribers
BSNL/MTNL - 11.66 crore subscribers
Fiber Kms:
Jio - 4.48 Lakh kms
Airtel - 2.5 Lakh kms
Vodafone Idea - 2.35 lakh kms
BSNL/MTNL - 7 Lakh kms
Spectrum:
Jio - 1650MHz
Vodafone Idea - 1850 MHz
Airtel - 2200MHz
BSNL/MTNL - 640 MHz
The combination will have a wide spectrum portfolio of about 1,850 MHz, over 2 lakh mobile sites and about 2.35 lakh kms of fibre. This will allow it to offer “superior voice and broadband connectivity across the country, covering 92% of the population and reaching nearly 5,00,000 towns and villages,” it said.
https://www.livemint.com/Companies/...lete-merger-create-Indias-largest-mobile.html
The company will Fire the excessive head count in the above sections only.
For the customers, They will get good coverage as they (Either) one of them will use the others towers and Unnecessary (Duplication) towers sites shall be Shut-Down!
If Idea Signal was weak in your area & Vodafone is good, you will get coverage from Vodafone ~~~~ Vice-Versa!
If both have poor coverage, May God Save you!
-------------------------------------------------
Website: www.vodafoneidea.com
Subscribers (Crores):
Vodafone Idea Ltd - 40.8 crores
Airtel - 34.4 crores
Jio - 21.5 crores subscribers
BSNL/MTNL - 11.66 crore subscribers
Fiber Kms:
Jio - 4.48 Lakh kms
Airtel - 2.5 Lakh kms
Vodafone Idea - 2.35 lakh kms
BSNL/MTNL - 7 Lakh kms
Spectrum:
Jio - 1650MHz
Vodafone Idea - 1850 MHz
Airtel - 2200MHz
BSNL/MTNL - 640 MHz
The combination will have a wide spectrum portfolio of about 1,850 MHz, over 2 lakh mobile sites and about 2.35 lakh kms of fibre. This will allow it to offer “superior voice and broadband connectivity across the country, covering 92% of the population and reaching nearly 5,00,000 towns and villages,” it said.
https://www.livemint.com/Companies/...lete-merger-create-Indias-largest-mobile.html
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all the Idea validity duration for same recharge value has come down now. Previously I got 84 days validity with Rs 398 recharge. Now validity has become 70 days. Other plans in similar situation. lol. Effect of Vodafone prices on Idea. I bet Idea will lose customers fast in coming months.
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