The official announcement from Britain’s Vodafone Group to merge its Indian subsidiary with local Kumar Mangalam Birla controlled Idea Cellular within next two years is sought to bring one more telecom revolution in India. This is the biggest merger ever made in India creating the world’s second largest telecom market after China.
As per reports, Vodafone (204 Million) –Idea (190 Million) jointly has 394 million subscribers base in India giving them a combined market share of 35% eclipsing Bharti Airtel’s 270 million. The aggregate revenue from the merger is declared to be over Rs. 80,000 Crores.
This will also create a new battle field amidst a cut throat competition began by Mukesh Ambani’s recently launched Reliance Jio. Though Vodafone-Idea merger was speculated sometime back but the official statement came yesterday.
Although Vodafone will hold 45.1% and Idea Cellular 26.1% stake in post merger proceedings, they will have equal voting rights. Name and brand entity will be decided later on.