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Merger of Idea Cellular and Vodafone India Complete – Creating India’s largest Telecom Service Provider

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Vodafone-Idea Merger

The merger of Idea Cellular and Vodafone

Vodafone India and Idea Cellular
The merger brings together Vodafone India and
Idea Cellular

Over 408 million subscribers, #1 RMS in 9 circles, a broadband  network of 340,000 sites, widest distribution reach with 1.7 million retail outlets

              Both Vodafone and Idea brands to continue!

  • Idea Cellular (being renamed as ‘Vodafone Idea Limited’) – An Aditya Birla Group & Vodafone Group partnership becomes operational as India’s leading telecom service provider with a subscriber base of over 408 million.  New Board of Directors comprising 12 Directors (including 6 Independent Directors) constituted, with Mr. Kumar Mangalam Birla as the Chairman.
  • The Board has appointed Mr. Balesh Sharma as the CEO.
  • Pan India Revenue Market Share (AGR) of 32.2%3, and a #1 position in 9 circles.
  • Growing broadband network (3G+4G) with over 340,000 broadband sites covering 840 million Indians.
  • Largest voice network with over 200,000 unique GSM sites 4 to cover over 1.2 billion Indians (92% population coverage).
  • Large spectrum portfolio of ~1850 MHz and an adequate number of broadband carriers, to provide superior consumer experience across 2G, 3G, and 4G platforms.
  • Widest distribution reaches over 1.7 million retailers and ~15,000 branded stores to service customers.
  • Both Vodafone and Idea brands, which have strong consumer affinity across metro, urban, rural and deep interior markets, will continue to operate.

Financial Highlights

  • A merger is expected to generate Rs. 140 billion annual synergies, including opex synergies of Rs.84 billion, equivalent to a net present value of approximately Rs. 700 billion.
  • The equity infusion of Rs. 67.5 billion at Idea and Rs. 86 billion at Vodafone coupled with the monetization of standalone towers of both companies for an enterprise value of Rs. 78.5 billion, provides the company with a strong cash balance of over Rs. 193 billion6 post-payout of Rs. 39 billion to the DoT.
  • Additionally, the Company has an option to monetize an     11.15% stake in Indus, which would equate to a cash consideration of Rs. 51 billion.
  • As of 30 June 2018, net debt was INR 1092 billion.
Vodafone India and Idea cellular
Vodafone India and Idea cellular

On the occasion of the merger, Mr. Kumar Mangalam Birla, Chairman Aditya Birla Group, and Vodafone Idea Limited said that they have created India’s leading telecom operator. It is truly a historic moment. It 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 Honorable Prime Minister describes it, is a monumental nation-building opportunity. Vodafone Idea, 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 touch points across the country.

Welcoming customers to India’s leading telecom network, Mr. Balesh Sharma, CEO, Vodafone Idea Limited, said that 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. They committed to offering both our retail and enterprise customers an excellent experience while fulfilling their evolving digital and connectivity needs via new products, services, and solutions. Offers like more network coverage, more value, and more excitement. To look forward to continuing support and invite to enjoy the Vodafone Idea experience.

Vodafone India and Idea cellular
Vodafone India and Idea cellular

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.

Don’t miss: Vodafone 4G VoLTE started rolling out in India

The company is committed to creating 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 km of fiber, 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.

As a customer here is what going to change for you: The Idea-Vodafone Merger: What can you Expect?

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.

Vodafone India and Idea cellular
Vodafone India and Idea cellular

ANNEXURE

Details of Board of Directors and Senior Leadership Team
Vodafone Idea Limited: Board of Directors

  • Kumar Mangalam – Birla Chairman
  • Debnarayan Bhattacharya – Non-Executive Director
  • Himanshu Kapania – Non-Executive Director
  • Ravinder Takkar – Non- Executive Director
  • Thomas Reisten  – Non-Executive Director
  • Vivek Badrinath – Non-Executive Director
  • Arun Kumar Adhikari – Independent Director
  • Arun Thiagarajan – Independent Director
  • Ashwani Windlass – Independent Director
  • Doug Baillie – Independent Director
  • Tarjani Vakil – Independent Director
  • Uday Khanna – Independent Director

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