On Tuesday, Vodafone Group chief executive officer Vittorio Colao and his successor Nick Read met telecom minister Manoj Sinha and secretary Aruna Sundararajan. They said, the company remains upbeat about India and will ‘remain competitive’.
Top executives of Vodafone met Idea telecom after the department of telecommunications gave a conditional approval to the long-pending merger of Vodafone’s India operations with that of Idea Cellular.
After the successful meetings with the top minister officers, successor Nick Read told reporters, “We’re happy that we got the letter and we look forward to a successful integration. We will remain competitive.”
When asked to comment on the progress of Vodafone India’s merger with Idea, Colao said, “We’re always optimistic about India.” Read added that the Group was focused on the Indian market and will “remain invested” here.
In the conditional approval given by DoT on Monday, it has asked for an upfront payment of Rs. 7,268 crore, that is split between a bank guarantee of Rs. 3,342 crores to cover what Idea owes on account of one-time spectrum charges and cash of Rs. 3,926 crores that Vodafone owes towards the market price for non-auctioned airwaves.
The executives, however, did not comment on whether Vodafone India will pay up the demand raised by the government or challenge it in courts. The merger will result in a new entity, Vodafone Idea Ltd., which will be the largest Indian carrier and expected to be better placed to take on competition from moneyed Reliance Jio Infocomm and Bharti Airtel. Together, Vodafone Idea will have 37.5% revenue market share and 39% customer market share, or about 40 million subscribers, making them a stronger entity.
the integration was expected happened in February. This will be the biggest deal in the telecommunication sector. The company is formed after the merger will be the largest company in the telecom sector.
According to Maharashtra Times, India Ratings and Research Agency report said, if this proposal is successful, then the company that will be formed after the merge will be India’s largest telecom company. The company will have more than 40 million subscribers. Besides, the revenue of the company will be around 40%.