Vodafone, Idea combine to race past Airtel on almost all metrics
Shares of Idea Cellular
zoomed over 29 percent intraday on Monday after Vodafone confirmed talks with the Aditya Birla Group firm for a possible merger.
The combined entity will create India's largest telecom company with revenues of over Rs 80,000 crore.
The merger, if it goes through, will create India’s largest telecom player both in revenues and subscribers. What fuels the talk of a merger include threat to the two incumbents and Bharti Airtel
from Reliance Jio. The latest entrant in the telecom sector, Reliance Jio is fast acquiring subscribers on the back of free voice and data services under its Happy New Year offer. Jio acquired 72.4 million subscribers in the four months of commencement of services.
While Vodafone has a stronger base in metros, greater rural focus is Idea’s game.
The rally spilled over to other telecom stocks as well, with Bharti Airtel soaring over 12 percent, while Reliance Communications
gained 9 percent.
Meanwhile, Aditya Birla Group stocks such as Grasim, AB Nuvo gained 6-8 percent intraday on the BSE.
If the two firms come together, the new entity will have a combined subscriber strength of 39 crore, way above Airtel’s 27 crore and Jio’s 7.2 crore currently. The market share too will go up to 40 percent, surpassing Airtel’s 32 percent.
While the deal would help Vodafone improve its positioning in the market, Idea will get access to Vodafone’s strong foothold in the metro cities. The merged entity will have the highest 4G spectrum in the 1800 MHz band, brokerage firm CLSA said in a report.
The deal will also pave the way for Vodafone's listing in India, as Idea is already listed on India stock exchanges.
Here is a look at current numbers - in terms of revenue, subscribers and spectrum - of the top telecom companies.
Source: Moneycontrol
The combined entity will create India's largest telecom company with revenues of over Rs 80,000 crore.
The merger, if it goes through, will create India’s largest telecom player both in revenues and subscribers. What fuels the talk of a merger include threat to the two incumbents and Bharti Airtel
While Vodafone has a stronger base in metros, greater rural focus is Idea’s game.
The rally spilled over to other telecom stocks as well, with Bharti Airtel soaring over 12 percent, while Reliance Communications
Meanwhile, Aditya Birla Group stocks such as Grasim, AB Nuvo gained 6-8 percent intraday on the BSE.
If the two firms come together, the new entity will have a combined subscriber strength of 39 crore, way above Airtel’s 27 crore and Jio’s 7.2 crore currently. The market share too will go up to 40 percent, surpassing Airtel’s 32 percent.
While the deal would help Vodafone improve its positioning in the market, Idea will get access to Vodafone’s strong foothold in the metro cities. The merged entity will have the highest 4G spectrum in the 1800 MHz band, brokerage firm CLSA said in a report.
The deal will also pave the way for Vodafone's listing in India, as Idea is already listed on India stock exchanges.
Here is a look at current numbers - in terms of revenue, subscribers and spectrum - of the top telecom companies.
Source: Moneycontrol
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