On Monday, Aditya Birla group’s Idea Cellular announced approval of the merger with Vodafone India.
Currently, Vodafone India is country’s second largest telecom operator, whereas Idea Cellular is at number three. The togetherness of Idea and Vodafone will create India’s largest telecom operator with over 400 million users in the country.
Vodafone will have 45.1 per cent stake while Idea will own 26 percent stake in the combined entity and the remaining will be held by the public.
Idea Cellular and Vodafone merger are expected by 2018 and the agreement is subject to approvals from different regulatory agencies.
Aditya Birla Group chairman Kumar Mangalam Birla said: “The landmark combination will enable the Aditya Birla Group to create a high-quality digital infrastructure that will transition the Indian population towards a digital lifestyle and make the government’s Digital India vision a reality”.
However, this new wave in the telecom sector has been created with the entry of Mukesh Ambani’s Reliance Jio Infocomm which has completely changed aspects of telecom operators in the country.
Recently, Jio also decided to merge its wireless business with Aircel.