The booming telecom industry has been attracting large amount of investments in the country. The number of telephone subscriber base in the country reached
Jul 10, The merger will mark the end of the consolidation spree in the telecom market where many small players had to exit because of intense competition. The conditional nod to the merger, subject to payment of dues, was given on Monday, a senior DoT official said.
The department had earlier decided not to take the recent Airtel-Telenor legal intervention as a benchmark to clear the current Vodafone-Idea Cellular. DNA Money on June 26 had reported that the department is likely to raise a demand of Rs 6, crore from both the telecom firms.
DoT had earlier sought a legal view for raising demands. However, the companies may move court to get a stay on deposit of spectrum dues as the matter of one-time spectrum charge has already been challenged by telecom players in the court, according to sources.
Vodafone will own Vodafone Idea will hold 1, MHz of spectrum, which included 1, MHz of liberalised spectrum acquired through auctions. The Aditya Birla Group has the right to acquire up to a 9. Ambrish Jain, currently the deputy MD at Idea Cellular, is set to become the new chief operating officer.
The last approval has to come from the DoT, while the rest is already in place. Vodafone and Idea Cellular had announced a merger last year, following the entry of a new player Reliance Jio, which triggered a consolidation phase in the telecom industry forcing small and marginal players to exit the hyper-competitive market.
Full network integration of Vodafone and Idea after the merger may narrow this gap, but this could be months. Capital expenditure requirements and integration costs for the next four to five quarters may be covered by recent cash injections, HSBC said.
During the consolidation phase, Airtel acquired Telenor India and announced acquisition of wireless operations of Tata Group, Reliance Jio has agreed to buy wireless assets of Reliance Communications and Aircel has filed for bankruptcy According to a PTI report, the combined 4G spectrum of both the companies is capable of offering up to megabit per second broadband speed on mobile phones in 12 Indian markets.
The management structure has already been announced by the firms. The new entity is proposed to be called as Vodafone Idea. The combined debt of both the companies is estimated to be around Rs 1.Here are the latest stock price details of India's top Telecom stocks.
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The Department of Telecommunications (DoT) on Monday cleared the merger of Vodafone India and Idea Cellular with conditions to deposit Rs 3, crore as . Find the latest telecom Industry news, online Industry information, views & updates. Get online news from the Indian Telecom Industry on ET Telecom.