The Indian section of British telecom company, Vodafone and Idea have thought to undergo a merger. Getting together, they strive to become the giant telecom operator which will be largest in the country. Vodafone already runs as a second largest operator in the country and Idea comes on 3rd number. Alone, Idea owns 40 crore customers in the country. Merger of these two mammoths will make them the most prominent in the nation.
On 3G/4G footprint, the handshake of Aditya Birla Group and Vodafone India will manage to from the most reachable and scattered network in the country. With this, they may be aiming to knockdown the current dominator of the market, Bharti Airtel.
As per the current scenario, their hard-core competitors like the omnipotent newcomer, Reliance Jio and the old player Airtel Bharti. A merger of Idea Cellular and Vodafone India will be a strong competitor of these hard to shake giants.
Mangalam Birla, who is the chairman of Aditya Birla Group says, “The landmark combination will enable the Aditya Birla Group to create a high quality digital infrastructure that will transition the Indian population towards a digital lifestyle and make the government’s Digital India vision a reality”.
- Today’s meeting of the board of directors of Idea Cellular, they decided to give consent to the, “the plan of amalgamation of Vodafone India Limited and its wholly owned subsidiary Vodafone Mobile Services Limited with the company”.
- In this consent, the Aditya Birla Group will capture 26 percent of the total entity and will be responsible for stabilizing shareholdings in the company.
- They look forward for a synergy comforts for both in the form of Rs. 67,000.
- The chairman of the aligned organisation will be appointed by the promoters. On the other hand, the appointment of chief operating officer and chief executive officer will be chosen with the consent of both the companies.
With this grand merger, we hope for even more better days of telecom industry. Does it suggest a breakthrough in the long going monopoly? Certainly Yes!