India’s Largest Telecom Company Vodafone India Would Beat Airtel And Jio

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Vodafone and Idea are officially merged. The National Company Law Tribunal (NCLT) has given its approval to go ahead for the new existing object: Vodafone Idea Limited and this way India’s largest telecom company  has been built.  On their first day of their operations, they would surely beat the big giants in the Telecom industry Reliance Jio and Airtel. Balesh Sharma has been approved and is  appointed as the new CEO  of Vodafone Idea Limited.

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The Chairman of Aditya Birla Group and Vodafone Idea Limited, Mr. Kumar Mangalam Birla said, “Today, we have created India’s leading telecom operator. It is truly a historic moment.

Below are some of the interesting facts about the merger:

If you consider the subscribers then Vodafone Idea Limited is India’s leading telecom company. Vodafone-Idea would be having a combined subscriber count of nearly 408 million and the revenue share of approximately 3.2%, pan India. Vodafone India is said to be the first player cording to the revenue generation in total 9 circles.

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The new entity would command 840,000 broadband sites thereby covering 840 million Indians and then providing them with 4G and 3G coverage. As the 200,000 unique GSM sites of Vodafone would be covered by nearly 92% of the Indians, Vodafone Idea would become India’s largest voice network including the data.

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Vodafone Idea also has large spectrum portfolio of  ~ 1850 MHz thereby providing 2G,3G and 4 G coverage. They also have ~235,000 kms of the fibre widespread across the country.  In terms of market penetration for dealers and retailers, Vodafone-Idea is #1 right now. They have 1.7 million retailers and ~15,000 branded stores across India, highest among all telecom players.

If the financial numbers are considered, then its impact created is implausible. Vodafone India had also combined annual synergy of Rs. 140 billion those include opex synergies of Rs. 84 billion which is equivalent to the net present value of approximately Rs. 700 billion.Rs 78.85 billion is the combined enterprise value of this new entity, with a strong cash balance of Rs. 193 billion. Total debt of this combined entity is INR 1092 billion. Now, everyone is eyeing on Jio and Airtel because they will now have to deal with the largest telecom company of India.

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