On Monday July 9, DoT the telecom ministry (department of telecommunication) has approved the merger of India Cellular and Vodafone India which will create the country’s largest mobile services operator.
DoT said that Idea and Vodafone have to meet conditions for final approval and has also cleared the merger.
Idea cellular have to pay Rs 39.26 billion in cash for Vodafone range and have to provide a bank guarantee of Rs 33.42 billion as per the department.
The combination of Idea and Vodafone will make it as the country’s largest telecom operator will a subscriber base of around 430 million, 35% market share and its worth would be over Rs 1.5 trillion which is USD 23 billion.
Now with the merger of Vodafone and Idea will play on rock bottom margins with free voice calls and will give tough competition in the market. Around Rs 1.15 trillion is the combined debt of both the companies.