Vodafone's Next Merger May Make It The Largest Mobile Carrier In India
India's telecom industry has been one of the most varied markets of the world of wireless networks. And with Reliance JIo's new offerings of free voice calls and 4G data packs since its advent in September 2016, the competition among the major players in this industry has been superlative recently.Various telecom companies, by bringing new plans and offers, are trying to build up their own pillars in this market. Well, among them, Vodafone is now moving forward to sign a new deal with Idea cellular which is expected to change the scenario of Indian telecom sectors forever.
According to The Economic Times, the UK-based Cellular giant Vodafone has just agreed to merge with Indian telecom monster Idea cellular to build up a new supreme network with a target base of approximately 395 million subscribers in India. The nation, which has been known as the second largest telecom market of the world, is supposed to make up a subscribers base which is apparently more than double than the users' density of either Verizon or AT&T. As per a rough calculation, this planned telecom unit, if implemented in reality, will be one of the toughest contenders to the current single largest carrier of the country: Airtel.
As per a report by The Next Web, the deal will eventually create a new tied-up entity of worth $23.2 billion once the merger is finalized in 2018. Vodafone will own up to 45.1 percent of the combined entity, while Idea's parent firm Aditya Birla Group will have a 26 percent of the total holdings. The remaining part will be considered as a public enterprise. The new patch is further indicated to make up the largest 4G network ever in India.
Currently, Reliance Jio has been marking the most convenient and effective 4G network in the nation. It would be great to see how this upcoming merger tackles the craze for 4G connectivity in the country.