DoT gives a conditional nod to Vodafone-Idea Cellular merger

Vodafone expected to deposit cash by Friday; Idea preparing to give bank guarantees

Vodafone Idea is on its way to becoming the largest telecom operator in India as the Department of Telecommunications (DoT) on Monday gave a conditional nod to the merger between the second- and the third- largest telcos in the country.

UK-headquartered telecom major Vodafone and Kumar Mangalam Birla-controlled Idea Cellular cannot operate as one company till they pay more than Rs 72 billion to the government as one-time spectrum charges. The DoT has asked for a bank guarantee of Rs 33.42 billion from Idea Cellular, while Vodafone has to pay Rs 39.26 billion in cash in lieu of spectrum liberalisation,