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How Will We Benefit If Vodafone and Idea Merge?

With a combined user base of around 400 million, Vodafone Idea Ltd. has dethroned Airtel and become the number 1 telecom network provider in India. Here is what you'll get out of it.

Bharti Airtel has been on top in India in terms of telecom services, but for the first time in the past 15 years, it was dethroned and the largest ever telecom company claimed the spot – Vodafone Idea Ltd.

This combined entity is expected to have a customer base of 408 million and will definitely prove a formidable rival to Reliance Jio.

Fresh Start With 40% Share In The Mobile Network Market

The merger will have somewhere a notch above 40% share of the world no. 2 mobile market of India with the deal closed at Rs. 1.6 Lakh Crores.

KM Birla and Balesh Sharma, Chairman and CEO of VIL

Kumar Mangalam Birla, chairman of Aditya Birla Group announced that the Aditya Birla Telecom Ltd. would also be merged into Vodafone Idea Ltd.

Birla heads the new entity as chairman and Balesh Sharma will be the CEO, along with 12 other directors on the table.

What’s In It For The Customers?

Giving a tough competition to all rivals, particularly Jio, Vodafone Idea has promised users free voice calls for a lifetime validity!

Vodafone Idea Limited soon to launch its services

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Better tariffs, improved customer service, better call services and above all, the claim to soon introduce 5G network in India, have created a hype in the market about the new telecom giant.

With a better hold on digital services like cloud, IoT, advanced enterprise offerings, VIL is aiming for the sky.

VIL has around 2,35,000 kms of fibre to cover 1.2 billion Indian users. This increases the spectrum portfolio and bandwidth to provide better services in 3G and 4G.

The fluctuating prices of telecom services will more or less get stabilized due to the big merger, and will go to proper affordable prices, keeping the common man in view.

The infusion of Idea’s Rs. 67.5 billion with Vodafone’s Rs. 86 billion is expected to yield a profit value of Rs. 78.5 billion with a cash balance around Rs. 193 billion, is sure to bring in big changes in the Indian mindset of choosing their mobile network.

The free voice call revolution that Jio brought in, makes VIL most vulnerable to share drops and rural percentage use drop.

Do I Have To Migrate?

No customer of individually Vodafone or Idea has to migrate to VIL. The business operating website of both the telecom companies will continue to operate separately, only the capital will be merged for better service provision.

Shockingly, Vodafone Group sold a lot of its holding to Idea’s promoters and is looking at deconsolidating Indian operations from its books, showing signs of disinterest in Indian business market.

All set to launch somewhere around New Year, VIL is expected to bring 5G services in 2 years. Either we are seeing the rise of another Jio-like service, or VIL actually has a lot up its sleeves.


Image Source: Google Images

Source: Economic Times, Hindustan Times, LiveMint


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