Devesh
Core Member
How did it all start, I mean we obviously know what the trigger for this transaction was but how did all start, who made the first move?
Kumar Mangalam Birla: It is important to underlying the fact that the transaction primarily is driven by the industrial logic of both of these companies coming together. If you talk about leadership in 21-22 circles, market share of 40% on an all-India basis, customer share of 35% for both the entities together, so on and so forth, I think that has to be the foundation of any equal partnership.
The fact that you had competitive intensity grew up in last few months, is always a trigger which can possibly expedite something like this but it is fundamentally driven by the fact that both these companies have complementary assets in terms of spectrum, in terms of the network, in terms of channel partners, so on and so forth. We believe that this is going to be a very compelling story for our shareholders, for our employees and for the country at large.
ET Now: Your intent was to create a merger of equals and yet financially that is not happening at this point in time. So from Vodafone’s point of view, what do you see, you are willing to give a call option to your partner, your pairing down stake if need be, have restricted voting rights for the period of three to four years, what is in it for Vodafone?
Vittorio Colao: First of all, as Kumar has just said the intent is to create a real partnership. To create a real partnership, you need to co-manage and to have the same rights. So, the decision was that that would be through from day one. From day one, we will be completely equal.
Nothing is free, Reliance Jio will have to charge sooner or later: Vodafone's Vittorio Colao, Telecom News, ET Telecom
Kumar Mangalam Birla: It is important to underlying the fact that the transaction primarily is driven by the industrial logic of both of these companies coming together. If you talk about leadership in 21-22 circles, market share of 40% on an all-India basis, customer share of 35% for both the entities together, so on and so forth, I think that has to be the foundation of any equal partnership.
The fact that you had competitive intensity grew up in last few months, is always a trigger which can possibly expedite something like this but it is fundamentally driven by the fact that both these companies have complementary assets in terms of spectrum, in terms of the network, in terms of channel partners, so on and so forth. We believe that this is going to be a very compelling story for our shareholders, for our employees and for the country at large.
ET Now: Your intent was to create a merger of equals and yet financially that is not happening at this point in time. So from Vodafone’s point of view, what do you see, you are willing to give a call option to your partner, your pairing down stake if need be, have restricted voting rights for the period of three to four years, what is in it for Vodafone?
Vittorio Colao: First of all, as Kumar has just said the intent is to create a real partnership. To create a real partnership, you need to co-manage and to have the same rights. So, the decision was that that would be through from day one. From day one, we will be completely equal.
Nothing is free, Reliance Jio will have to charge sooner or later: Vodafone's Vittorio Colao, Telecom News, ET Telecom