Advertisement


Advertisement

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
General News Vodafone India could merge with Reliance Jio or Idea Cellular: Report
Advertisement
#1
Reliance Jio has taken the Indian telecom market by storm with its aggressively priced data plans, bundled app subscriptions and unlimited free voice calls. The operator has already crossed 50 million subscribers, and is believed to be on course to hit 100 million by March-end. Following Jio’s commercial launch, rival telecom operators are under immense pressure to match the competition. Though the likes of Airtel, Vodafone, and Idea Cellular, also top three telcos in India, are announcing aggressive plans to retain their subscribers, they still don’t really come close to Reliance Jio’s offers. One of the biggest casualties to the growing and intense competition could be Vodafone, which is reportedly seeking a merger with either Reliance Jio or Idea Cellular.

“The company has been caught in the crossfire of a sibling rivalry that has triggered a price war and put the brakes on a planned stock market flotation of Vodafone India. The problems have weighed on the FTSE-100 giant’s shares in the last year, overshadowing improvements in its core European markets,” reports Telegraph. BGR India has reached out to Vodafone, Reliance Jio and Idea Cellular for comments on the report.

According to the industry experts, Vodafone’s reported plans could initiate the second round of consolidation in the industry. Smaller companies like Telenor could be looking out for mergers. We have already seen Aircel merging with Reliance Communications, which has itself merged with Reliance Jio. If the trend continues, we could see fewer telecom players in the country with larger user bases.

As far as Vodafone is concerned, it may find itself with fewer options for a merger. Considering that Jio is focusing on acquiring smaller players, Vodafone may look towards Idea Cellular. “It is very unlikely for Mukesh Ambani to go for merger with Vodafone India because it is not (in) his DNA to write large cheques; his strategy is different. Birla group could likely be the one and the companies could opt for share swap. The conditions for that would be that Vodafone, as it is unlisted, will need to get valuation done and receive permission from Competition Commission of India,” LiveMint quotes an industry executive as saying.

“With two decades of existence and almost a decade of being national operator, it is not too soon to expect merger for Vodafone and Idea,” the executive further said. Experts also believe Vodafone, which is a big player, could look for a buyout rather than a merger.

Currently, Vodafone is the second-largest telecom player in the country after Airtel. As of September 30, 2016, Vodafone had 19.12 percent market share while the market leader Airtel had 24.76 percent. Idea ranked third with 17.03 percent share. Interestingly, parent Vodafone had invested about Rs 47,700 crore in its India unit, but the majority of the money was spent to clear the debt. In November, Vodafone had slashed valuation of its India unit by €5 billion blaming intense competition. The company also deferred its plans to launch an IPO in India.

Source:
___________________________________________
Airtel Digital HD Recorder / Kerala Vision Digital TV
Reply
Thanks given by:
Advertisement
#2
Vodafone, Idea Cellular deny merger possibility with Reliance Jio: Report

NEW DELHI: Quashing rumours and reports, Vodafone and Idea Cellular have denied any possiblility of merging with Mukesh Ambani-led Reliance Jio, citing high debts and revenue share and spectrum holding caps as the reasons, reported Hindustan Times.

Some reports suggested that Vodafone was considering merging with new entrant Reliance Jio after the intensified competition.

“It is not possible… The law of the land doesn’t allow this. There are spectrum holding caps and revenue market share (RMS) caps,” a source at Vodafone said.
Denying rumours of merging with Reliance Jio, a source from Idea Cellular said, “It’s mismatched DNA (with Idea or Jio).”

While Aircel, Reliance Communications and Telenor are already looking at possible consolidation, it may not be on the cards for the incumbent telcos including Bharti Airtel, Vodafone and Idea Cellular.

“The telecom industry is in high debt, and there is almost no space to add more debt,” added the Vodafone source.

Source:
___________________________________________
Airtel Digital HD Recorder / Kerala Vision Digital TV
Reply
Thanks given by:
Advertisement




Possibly Related Threads...
Thread Author Replies Views Last Post
  General News: Reliance Jio working on smartphones for Rs. 4,000 by 2020 nairrk 0 278 09-24-2020, 07:17 PM
Last Post: nairrk
  General News: Samsung Galaxy M51 launches in India nairrk 0 154 09-10-2020, 02:05 PM
Last Post: nairrk
  General News: Infinix Note 7 to launch in India with 48MP camera and MediaTek Helio G70 SoC nairrk 0 132 09-04-2020, 10:19 AM
Last Post: nairrk
  General News: Realme 7 and Realme 7 Pro launched in India nairrk 0 122 09-03-2020, 02:18 PM
Last Post: nairrk
  General News: Xiaomi Redmi 9A launched in India nairrk 0 131 09-02-2020, 01:06 PM
Last Post: nairrk
  General News: Reliance Jio not to launch any smartphone nairrk 0 259 06-25-2020, 07:52 AM
Last Post: nairrk
  Update: Reliance Jio tops 4G download speed chart, Vodafone leads in upload: Trai data nairrk 0 283 02-14-2020, 12:36 PM
Last Post: nairrk
  General News: Nokia 4.2 with notch display, dual cameras launched in India: Price, specifications.. nairrk 0 466 05-07-2019, 01:50 PM
Last Post: nairrk
  General News: Airtel, Hughes to combine their VSAT operations in India nairrk 0 456 05-07-2019, 09:49 AM
Last Post: nairrk
  General News: Nokia 7.1 Android One smartphone launched in India, priced at Rs 19,999 nairrk 0 977 11-30-2018, 03:12 PM
Last Post: nairrk

Forum Jump:


Users browsing this thread: 1 Guest(s)
Advertisement