NEW DELHI :
On Monday, the Telecom ministry approved the merger of Idea-Vodafone. This merger will imply creation of the nation’s largest mobile services operator.
An official source revealed, “DoT has cleared the Vodafone-Idea merger today. They will have to meet conditions for final approval.”
The source further revealed that the telecom department has asked the company Idea Cellular to pay Rs 3,926 crore and that too in cash to Vodafone spectrum and even furnish a bank guarantee of Rs 3,342 crore for the same.
This combined venture will result into the largest telecom operator which will be worth $23 billion. The venture will enjoy 35 percent market share and also a subscriber base of about 430 million.
Experts are viewing this merger to be a breather for both Vodafone as well as Idea. Both the firms are debt ridden and facing difficulties while trying to survive in the stiff competitive market conditions.