The dot which is an abbreviation for Department of telecommunications is at its urge to give merging approval to the two big names in telecom sector which are Idea and Vodafone. After this approval from DoT, these two big names will combine together to form the country’s biggest and largest mobile services operator and will become the king in the telecom sector.
Sources even revealed that Telecom Secretary Aruna Sundararajan had given a complete yes to this approval and the approval documents will be sent to the respected companies after signature by Communications Minister Manoj Sinha. Though both the companies have some unpaid dues so it has also been heard that currently, DoT is insisting a bank guarantee of around Rs 2100 crore as a one-time spectrum charge from Idea Cellular Ltd to approve its merger with Vodafone India. One of our sources even said that “We cannot ask the companies for payments, which are under judicial intervention, but we will ask the resultant merged entity to give an unequivocal undertaking to assume responsibility for such payments as and when the matter is resolved”.
As we all know that merging of Idea and Vodafone will result in the world’s second-largest and India’s largest telecom company in the telecom sector and the reason behind this merging being taking control over a market that Mukesh Ambani’s Reliance Jio Infocomm Ltd had disrupted with free voice calls and low data tariffs.
The sources further added that both the firms will start to operate as a new operator from 1st July only if the merger proceedings and various other formalities are completed till the end of this month and a meeting with the board of Idea Cellular has even been fixed for renaming the merged firm as Vodafone Idea.
It has also been up to our ears that after the merge of these two giants in telecom sector the market share of Vodafone Idea will be around 37 percent with approximately 433 million subscribers connected with this new mobile services operator. Until now Airtel has been the best mobile operator and at the top in the telecom sector with a market share of 32.2 percent but as all is set for the two big competitors to unite and become one, so now Airtel will have to be dominated by this new upcoming mobile service operator named Vodafone Idea that decided to join their hands some few years back to become the market leaders.