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Telecom ministry clears Idea-Vodafone merger with conditions: Govt sources

"DoT has cleared the Vodafone-Idea merger today. They will have to meet conditions for final approval," the source told PTI

Press Trust of India  |  New Delhi 

Vodafone Idea

The (DoT) on Monday approved the merger of Vodafone India and Idea Cellular that will create the country's largest services operator, an official source said.

"has cleared the Vodafone-Idea merger today. They will have to meet conditions for final approval,” the source told PTI.

The department has asked Idea Cellular to pay Rs 39.26 billion in cash for Vodafone spectrum and furnish a bank guarantee of Rs 33.42 billion, the source further said.

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 trillion), with a 35 per cent market share and a subscriber base of around 430 million.

The merger is expected to give breather to both debt-ridden firms Idea and Vodafone, from cut-throat competition in the market where margins have hit rock bottom with free voice calls.

The combined debt of both the is estimated to be around Rs 1.15 trillion.

First Published: Mon, July 09 2018. 18:28 IST
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