Idea-Vodafone merger with 'conditions applied', confirms Telecom Ministry
Merger of Vodafone India and Idea cellular has been approved by the Department of Telecommunications (DoT), creating country's largest mobile operation.
Official sources added, "DoT has cleared the Vodafone-Idea merger today. They will have to meet conditions for final approval."
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 merger is expected to give a relief to both debt-ridden firms, from competition in the market where margins have hit rock bottom with free voice calls and other services.
The merger of Idea and Vodafone will form them India’s largest telecom operator worth over $23 billion (or over Rs 1.5 lakh crore), with a 35 percent market share and a subscriber base of around 430 million.
The combined debt of both the firms is nearly to Rs 1.15 lakh crore.
-PTC News
