India's third-largest telecom operator Vodafone Idea (Vi) has secured a 10-year breather on adjusted gross revenue (AGR) payments from the Department of Telecommunications (DoT). This is expected to ease pressure on its balance sheet and enable the company to raise bank debt for capital expenditure.
The merged entity would be known as 'Vodafone Idea Ltd'.
Idea Cellular has reduced its outgoing rates by 33 per cent to Rs 1.99 for all calls from cell-to-cell and cell-to-landline and WLL connections under post-paid scheme, while that for pre-paid segment has been at Rs 2.49 with effect from Sunday.\n\n\n\n
Idea Cellular on Wednesday said it is "seriously evaluating" going for an initial public offering in the domestic market as part of efforts to fund its expansion plans, although a decision on the issue is yet to be taken.
Aditya Birla Group on Wednesday raised its stake in Idea Cellular to 50.15 per cent after it bought Cingular Wireless's stake for $150 million (about Rs 650 crore).
Idea Cellular Ltd, a three-way joint venture company between Tata, Birla and AT&T, has launched two new tariff schemes, Chitchat Flexi and Buzz99, for its new and existing customers.
Aditya Birla group's Idea Cellular has signed a deal to acquire 40.8 per cent stake in Spice Communications for Rs 2,716 crore (Rs 27.16 billion).
Even if the company's merger issue was sorted out, it would have a lot of ground to cover in order to attract subscribers.
To become the most favoured operator in the MNP stakes, Idea has worked hard to spruce up its network and quality of service.
On the back of this, leading GSM incumbent Bharti Airtel's shares opened on a bullish note and then gained further ground and touched an early high of Rs 334.55 on the BSE, higher by 8.96 per cent from its previous closing price.
The government on Friday said it was examining the issue of shareholding in Idea Cellular raised by Aditya Birla Group and a rejoinder submitted by Tatas.
Service was launched in Mumbai in July and it will be expanded across the country in a phased manner
The company and a unit had received tax demands from authorities over a restructuring exercise approved by courts more than three years ago.
Shrugging off a troubled history, which stunted growth for several years, Idea Cellular, India's sixth largest wireless player is moving on.
Denying any breach of merger and acquisition (M&A) norms, Aditya Birla group firm Idea Cellular on Tuesday said the company's merger with Spice Communications was approved by court and consummated with the full knowledge of the Department of Telecom.
Idea Cellular on Tuesday unveiled its revised tariff plans under which airtime charges have been reduced by 43 per cent for the post-paid customers.
Rajat Mukherjee, chief corporate officer - Idea Cellular, says that they were not part of the group of companies which started out in 2008. In fact, they had applied for licneses three years earlier. "It is unfortunate that we were clubbed with the others."
Standard call rates to countries like the US, the UK and Canada has been raised.
In August 2021, Nick Read, chief executive of Vodafone Plc at the time, did not mince his words while speaking about the India business in an earnings call. Replying to an analyst's question on Vodafone Idea, a venture with the Aditya Birla Group that had piled on huge debts and worrisome losses, Read described it as a highly stressed situation that "they (Vodafone Idea) are trying to navigate... "We, as a group, try to provide them as much practical support as we can, but I want to make it very clear, we are not putting any additional equity into India.''
Market concentration in the country's telecom sector continues to scale new heights despite government bailouts of public-sector Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), and private-sector Vodafone Idea. The combined revenue (or net sales) share of the country's top two telecom operators - Bharti Airtel and Reliance Jio - in the sector's total reached an all-time high of nearly 72 per cent in FY23 from 70.4 per cent in FY22 and around 60 per cent in FY20. The net sales of Reliance Jio and Bharti Airtel India were Rs 1.67 trillion in FY23, up 18.6 per cent from the Rs 1.4 trillion a year earlier.
The overall wireless subscriber base increased to 114 crore at the end of June
Idea Cellular will have to furnish an undertaking that it will entertain all the liabilities whenever a final decision is taken by the courts
Kumar Mangalam Birla will be the non-executive chairman and Balesh Sharma the new CEO of the merged entity, which will remain listed.
In July 2012, TDSAT gave split verdict where one of the bench member ruled in favour and other member ordered against it.
Telecom operators Vodafone and Idea Cellular on Monday said they will resume 3G services in circles where they don't have spectrum through intra-circle roaming (ICR) pacts with other operators.
A new board has been constituted for the merged entity 'Vodafone Idea Ltd' with 12 directors (including six independent directors) and Kumar Mangalam Birla as its Chairman. The board has appointed Balesh Sharma as the CEO, the companies said in a joint statement. The combination will have an all-India revenue market share of 32.2 per cent and take the numero uno slot in nine telecom circles, it said adding that both Vodafone and Idea brands will continue.
While Airtel may be pushed to to No 3, Jio will find it mighty difficult to beat the new entity.
With the new entity coming in force, Bharti Airtel will lose the tag of India's biggest telecom service provider to the new entity.
Providence had bought 15 per cent in Idea Cellular in 2006 for around Rs 1,800 crore (Rs 18 billion) through its investment arm - P5 Asia Investment (Mauritius).
The move will help telcos, including Reliance Jio, Vodafone, and Idea Cellular
The Cellular Operators Association of India, industry body representing GSM operators, had argued that TTSL's spectrum was allotted through the same press release issued on January 10, 2008, which led to the cancellation of 122 licences.
Price of pre-paid special vouchers that offer services at discounted rates was also hiked while validity period on some recharge coupons reduced.
The launch of Reliance Jio Infocomm Ltd last September, particularly the tariff war it has unleashed on its competitors, has deepened the crisis facing India's telecom sector. One offshoot of this is the major drop in earnings reported by industry leaders Bharti Airtel and Idea Cellular with each passing quarter. Aslam Hunani/Rediff.com tells the story in numbers.
Taking the pole position among other operators, Reliance Jio logged download speed of 19.12 mbps during April, even bettering its own performance of 18.48 mbps demonstrated in the previous month
Adjusted gross revenue of the industry has grown just 5.3 per cent during the financial year ended March 31
Experts say going ahead data price will fall further due to competition
Triggering a tariff war, Idea Cellular on Thursday slashed data charges by 90 per cent in eight circles, following Bharti Airtel and Vodafone, who recently cut their rates by similar margins in select circles.
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