ALSO READAs price war rages, Vodafone India seeks merger with rival Idea Cellular Vodafone India seeks merger with rival Idea Cellular as price war rages Vodafone to merge India operations with Idea Cellular Vodafone says in Indian merger talks with Idea Cellular Vodafone says in merger talks with Idea Cellular
MUMBAI (Reuters) - Britain's Vodafone Group
The combined Vodafone-Idea group would India's largest telecom operation with almost 400 million customers, or 35 percent market share.
The merger comes after India's mobile industry was thrown into turmoil with the launch last year of Reliance Jio Infocomm, the new 4G mobile broadband network built at a cost of more than $20 billion by India's richest businessman, Mukesh Ambani, as part of his Reliance Industries
Idea said the companies expected cost and capex synergies of about $10 billion in net present value after integration costs and spectrum payments.
Vodafone, the world's second-largest cellphone operator, has endured a tumultuous ride since it entered India in 2007, with fierce competition and a high-profile tax battle making a business contributing more than 10 percent of its revenues and profits its most unpredictable by far.
($1 = 65.4225 Indian rupees)
(Reporting by Rafael Nam; Additional reporting by Swati Bhat; Editing by Stephen Coates)
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