Vodafone and Idea merger complete, creating India’s largest telco
Vodafone and Idea Cellular have successfully completed their merger to form the biggest Telecom Service Providers in India with a subscriber base of 408 million. The brand has been renamed Vodafone Idea Limited – An Aditya Birla Group and Vodafone Group partnership. Both Vodafone and Idea brands, which have strong consumer affinity across metro, urban, rural and deep interior markets, will continue to operate.
The New Board of Directors of the company comprising of 12 Directors (including 6 Independent Directors) constituted, with Mr. Kumar Mangalam Birla as the Chairman, have chosen Mr Balesh Sharma as CEO.
The 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. Their Pan India Revenue Market Share (AGR) of 32.2%3, and a #1 position in 9 circles. Both Vodafone and Idea brands, which have strong consumer affinity across metro, urban, rural and deep interior markets, will continue to operate.
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 nation-building 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. ”
The merger brings together Vodafone India and Idea Cellular, two of India’s leading operators who played a key role in making mobile the most popular mode of communication and drove the telecom revolution across the country. The combined company is designed to be agile, digitally savvy and future fit. It is a professionally run world class organization, combining the best from both Vodafone India and Idea Cellular. The company is committed to create a truly ‘Digital India’ by enabling millions of citizens to connect, join the digital revolution and build a better tomorrow. It will accelerate India’s progression towards a digital economy with a portfolio of quality products and services on offer under both its popular and loved brands - Vodafone and Idea.
With 1850 MHz of total spectrum holding, over 200,000 unique GSM sites and ~235,000 kms of fibre, the merged company offers superior voice and broadband connectivity across the country, covering 92% of the population and reaching nearly 500,000 towns and villages. This extensive infrastructure will allow customers to remain confidently connected across the country and enjoy uninterrupted services even as it integrates and optimizes its network in a phased manner across circles.
In addition to superior quality voice and data service experience, customers will enjoy a variety of digital services and solutions including mobile payments, Internet of Things (IoT), advanced enterprise offerings and entertainment, conveniently accessible via digital channels as well as extensive on-ground presence through 15,000 branded outlets and 1.7 million retail touch points across the country. Vodafone Idea will continue to invest in developing world-class infrastructure and introduce newer and smarter technologies – IoT, high speed and secure leased lines, digital wallets, MIMO and cloud services. As the trusted partner for Indian enterprises, it will empower businesses with future-ready products and services to help them scale up, become more efficient and tap new, emerging opportunities in the digital era.
The Company draws on support from its two largest shareholders – Vodafone Group Plc and Aditya Birla Group – to drive excellence and value creation from this merger.