Over 408 million subscribers, 1 RMS in 9 circles, broadband network of 340,000 sites, widest distribution reach with 1.7 million retail outlets.
Idea Cellular (being renamed as ‘Vodafone Idea Limited’) – An Aditya Birla Group & Vodafone
Group partnership- becomes operational as India’s leading telecom service provider with a subscriber base of over 408 million.
New Board of Directors comprising 12 Directors (including 6 Independent Directors) constituted, with Mr. Kumar Mangalam Birla as the Chairman.
The Board has appointed Mr. Balesh Sharma as the CEO.
- Pan India Revenue Market Share (AGR) of 32.2%3 , and a #1 position in 9 circles.
- Growing broadband network (3G+4G) with over 340,000 broadband sites covering 840 million Indians.
- Largest voice network with over 200,000 unique GSM sites4 to cover over 1.2 billion Indians (92% population coverage).
- Large spectrum portfolio of ~1850 MHz and an adequate number of broadband carriers, to provide superior consumer experience across 2G, 3G and 4G platforms.
- Widest distribution reach with over 1.7 million retailers and ~15,000 branded stores to service customers.
Both Vodafone and Idea brands, which have strong consumer affinity across metro, urban, rural and deep interior markets, will continue to operate.
Merger is expected to generate Rs. 140 billion annual synergy, including opex synergies of Rs.84 billion, equivalent to a net present value of approximately Rs. 700 billion
The equity infusion of Rs. 67.5 billion at Idea and Rs. 86 billion at Vodafone coupled with monetization of standalone towers of both companies for an enterprise value of Rs. 78.5 billion, provides the company a strong cash balance of over Rs. 193 billion post payout of Rs. 39 billion to the DoT.
Additionally, the Company has an option to monetise an 11.15% stake in Indus, which would equate to a cash consideration of Rs. 51 billion
As at 30 June 2018, net debt was INR 1092 billion
On the occasion of the merger, Mr. Kumar Mangalam Birla, Chairman Aditya Birla Group and Vodafone Idea Limited, said, “Today, we have created India’s leading telecom operator. It is truly a historic moment. And this is much more than just about creating a large business. It is about our Vision of empowering and enabling a New India and meeting the aspirations of the youth of our country. The “Digital India”, as our Honourable Prime Minister describes it, is a monumental nationbuilding opportunity. As Vodafone Idea, we are partnering in this initiative by building a formidable company of international repute, scale and standards.”
Vodafone Idea will accelerate India’s progression towards a digital economy, enabling millions of citizens to connect to the digital revolution and build a better tomorrow. We will continue to offer a wide variety of digital services and solutions under both of our popular and loved brands (Vodafone and Idea). Services – including Voice, Data, Mobile payments, IoT, advanced enterprise offerings and entertainment – will all be conveniently accessible via digital channels and extensive on-ground presence of 15,000 branded stores and 1.7 million retail touchpoints across the country.
Welcoming customers to India’s leading telecom network, Mr. Balesh Sharma, CEO, Vodafone Idea Limited, said, “As India’s leading telecom operator with two popular and loved brands, the company has the scale and resources to ensure sustainable customer choice and introduce new technologies. We are committed to offer both our retail and enterprise customers an excellent experience while fulfilling their evolving digital and connectivity needs via new products, services and solutions. We will offer them more network coverage, more value and more excitement. My team and I look forward to your continuing support and invite you to enjoy the Vodafone Idea experience.” – CT Bureau