- A MiG 21 fighter jet crashes in Kangra district of Himachal Pradesh: Police.
- Govt is ready for discussion on any issue raised by different political parties: PM Modi
- PM Narendra Modi calls for extensive discussion on important issues of national interest
- Two bodies pulled out of rubble of six-storey under-construction building that collapsed
BUSINESS & FINANCE
Idea-Vodafone merger approved, says Sinha
Telecom Minister Manoj Sinha said today that the government has approved the Idea Cellular and Vodafone India merger, the sector's biggest, but the companies need to complete some formalities for the final closure of the deal.
"We have already approved merger of Idea-Vodafone. There are some formalities which are pending that they have to complete for it (the merger)," Sinha told reporters on sidelines of a BSNL event -- the first on-record confirmation from the government side.
Top management of Vodafone, the British telecom firm, met the minister yesterday after the deal was given conditional approval by the Department of Telecom on July 9.
"They met me and to thanked that we have done it very quickly," Sinha said.
Vodafone CEO designate and Chief Financial Officer Nick Read, after meeting Sinha, had yesterday confirmed receiving the letter approving the merger.
"We are happy to receive the letter," he had said.
There have been industry speculations that Idea Cellular and Vodafone may challenge in court the demand of Rs 3,976 crore for one time spectrum charge of Vodafone India, and joint bank guarantee of Rs 3,342 crore sought by DoT before it grants final approval for the merger.
Vodafone executives did not respond to queries over their plans to make payment and furnishing bank guarantee.
Vodafone CEO Vittorio Colao, who will remain in office till October, said: "Yes. I am optimistic" that the new entity, to be named Vodafone Idea Ltd, will be in place before he remits the office."
When asked for plans of the British telecom firm post the new entity comes in place, Read said: "We have always been a strong investor in India. We will remain that".
The combined operations of Idea and Vodafone will create the country's largest telecom operator worth over USD 23 billion (or over Rs 1.5 lakh crore), with a 35 per cent market share and a subscriber base of around 430 million.
Debt-ridden firms Idea and Vodafone India are in process of merging their businesses in India as it is expected to bring down cost of their operations and give them relief from cut-throat competition in the market where margins have hit rock bottom with free voice calls.
Vodafone Idea will have the capacity to provide 4G spectrum in all telecom circles of the country. According to a presentation by Idea, the combined 4G spectrum of both the companies is capable of offering up to 450 megabit per second broadband speed on mobile phones in 12 telecom areas in the country.
With the new entity coming in force, Bharti Airtel will lose the tag of India's biggest telecom service provider to the new entity. The combined debt of both the companies is estimated to be around Rs 1.15 lakh crore.
Vodafone will own 45.1 per cent stake in the combined entity, while Kumar Mangalam Birla-led Aditya Birla Group will hold 26 per cent and Idea, 28.9 per cent. The Aditya Birla Group has the right to acquire up to 9.5 per cent additional stake from Vodafone under an agreed mechanism with a view to equalising the shareholding over time.
Balesh Sharma will be the new CEO of the merged entity. Idea's chief financial officer Akshaya Moondra will head the financial operations of the new entity as its CFO. Ambrish Jain, currently the deputy MD at Idea Cellular, is set to become the new chief operating officer.
- No proposal before TRAI to amend interconnection usage charges 18 Jul 2018 | PTI
- Markets open on higher note on Wednesday 18 Jul 2018 | IANS
- How the PM Awas Yojana is transforming the home-buying process 18 Jul 2018 | Agencies
- Airbus appoints new India head for its helicopters business 17 Jul 2018 | IANS
- India asks Oman to cut customs duties on chemical products 17 Jul 2018 | PTI
- Delhi airport dues: Civil Aviation Min to hold discussions with Home Min 17 Jul 2018 | PTI
- Technoology driving BFSI sector to grow: TCS 17 Jul 2018 | PTI
- Finmin approves Rs 11,336 cr capital infusion in 5 PSU Banks 17 Jul 2018 | PTI
- Tata Motors introduces AMT in Nexon mid-variant 17 Jul 2018 | PTI
- Nestle India market cap crosses Rs 1 lakh cr 17 Jul 2018 | PTI
Sunday EditionView All
15 Jul 2018 | PTI | New Delhi
Amid row over alleged use of derogatory language in a web series while referring to former Prime Minister Rajiv Gandhi, Congress chief Rahul Gandhi on Saturday said the BJP and the RSS believe that freedom of expression must be policed, while he regards it as a fundamental democratic right. “My father lived and died in the service of India...
STATE EDITIONSView All
18 Jul 2018 | Staff Reporter | RAIPUR
A two-month-old infant died due to suffocation after the door of the ‘108 Ambulance Service’ that was carrying him to a hospital malfunctioned and failed to open on time at Dr Bhimrao Ambedkar Hospital here on Tuesday. The Ambulance operators tried to open the door for a couple of hours but failed to open it on time...