Devesh
Core Member
Vodafone Group Plc doesn't have much of a choice but to accelerate consolidation moves in India — likely with Idea Cellular with whom it is in talks — as the UK telecom major tries to counter Reliance Jio Infocomm in a key market where it has been struggling to ward off value erosion, add customers and grow revenue market share (RMS).
Vodafone India, the No. 2 telco, and third ranked Idea are reckoned to be in merger talks, people aware of the matter told ET, with latest discussions locked over who will have operational control of the merged entity. If the two decide to merge, the new entity will be the largest telco in India by revenue and subscribers, replacing Bharti Airtel.
Recent reports suggested Vodafone could also be open to a consolidation with Jio, but the latter has denied it, saying it is focusing on organic growth.
Industry insiders expect a Vodafone and Idea consolidation to be the more likely option. Any such move though will face regulatory hurdles associated with spectrum caps and significant market power in terms of combined customer base and RMS, but these, they say, can be dealt with as the companies will have a year to do so.
Reliance Jio: Vodafone may actually join hands with Idea Cellular to negate Reliance Jio threat, Telecom News, ET Telecom
Vodafone India, the No. 2 telco, and third ranked Idea are reckoned to be in merger talks, people aware of the matter told ET, with latest discussions locked over who will have operational control of the merged entity. If the two decide to merge, the new entity will be the largest telco in India by revenue and subscribers, replacing Bharti Airtel.
Recent reports suggested Vodafone could also be open to a consolidation with Jio, but the latter has denied it, saying it is focusing on organic growth.
Industry insiders expect a Vodafone and Idea consolidation to be the more likely option. Any such move though will face regulatory hurdles associated with spectrum caps and significant market power in terms of combined customer base and RMS, but these, they say, can be dealt with as the companies will have a year to do so.
Reliance Jio: Vodafone may actually join hands with Idea Cellular to negate Reliance Jio threat, Telecom News, ET Telecom
