Vodafone India and idea cellulars on Friday have announced the completion of merger with 408 million subscribers or users & a revenue market share of 32.2% making the country’s largest telecom company or operator.
It was declared that a new board has been constituted & the name of the merged entity would be “Vodafone Idea LTD” with 12 directors out of which 6 are independent directors. Mr. Kumar Mangalam Birla will be its chairman & Mr. Balesh Sharma will be the CEO.
With 32.2% revenue market share in INDIA the marged entity becomes the largest in India & both the brands Vodafone & Idea will continue, the joint statement said.
The telecom giant will replace Bharti Airtel from its current peak position & experts say it will even put a huge challenge before Reliance JIO. It will have a broadband network of 3.4 lakh sites & 17 lakh retail outlets.
How it will effect customers?
It is very clear that the merged entity will have the more robust ecosystem of cellular towers. This company now will be the largest telecom company with 200000 unique GSM sites & has 235000 kms of fiber which cover over 1.2 billion Indians.
Now it is expected that the merged entity will have a strong hold on voice , data , payments, IoT, digital wallet, high speed lines, cloud services.
Most important factor which will effect the end users is how the merged entity will come up with challenging offers, obviously now this will reach a strong challenge to reliance JIO which in turn will show some reduction of price and yet better offers.