Home » Telecom » Vodafone India is Possible Talks of Merger with Reliance Jio or Idea Cellular: Telegraph
Last updated: January 10, 2017 at 13:50 pm

Vodafone India is Possible Talks of Merger with Reliance Jio or Idea Cellular: Telegraph

Vodafone Banner Header-002

The Indian arm of UK Telecom giant, Vodafone India might be going for a merger very soon with one of the Indian majors. The competition in India has heated up ever so much since the launch of Reliance Jio.

Vodafone India has been trying to do damage control with some new offers, but Airtel has also been giving it a hard time with new and better offers. According to reports by Telegraph UK, Vodafone India is looking to join other Indian majors like Idea Cellular or Reliance Jio.

“Vodafone is weighing a potential merger of its Indian arm with rivals as it seeks a turnaround in the sub-continent’s cut-throat mobile market,” the report said. The competition from Airtel and Jio combined has been causing too many problems to Vodafone’s share in the market.

Right now it is not very clear as to whether Vodafone India will join Idea Cellular or Reliance Jio, or all the three will merge together to form one large telco. But it doesn’t sound like a positive news for Airtel, that has been trying to capture the largest market share.

Vodafone hasn’t gone for its IPO yet, and it seems that Mukesh Ambani might not be interested in the deal. However, Idea Cellular, owned by Birla Group, could be the first to purchase majority of the shares in the company.

RELATED:  Reliance Jio Partners with Niantic; Brings Pokémon GO Channel on Jio Chat

The report also said, “Vodafone’s parent, in November, had cut the valuation of its Indian unit by €5 billion citing increased competition, which had caused its global loss to double. The telco also delayed its plan to launch an IPO to be listed on stock exchange in India.”

It also does not make sense for Reliance Jio to acquire Vodafone because Jio’s strategy has always been to offer cheaper tariffs to its customers and the latest super fast technology for use. Vodafone’s systems do not work like that and could hinder Jio’s growth.

What does this mean for Airtel?

With over 200 million customers, Vodafone is not a small telecom. Airtel leads the pack but Vodafone’s customer base can help any other large telecom to grow exponentially in a small amount of time.

Airtel has also been seen to have a high 97.5% retention rate, as compared to 85% on Reliance Jio. Vodafone’s shares have been going down because the customers are not happy, and the investors don’t see a light at the end of the tunnel.

Bharti Airtel should continue to roll out interesting offers to its customers to keep them engaged, while it is already launching some new acquisition offers. Airtel network is also more reliable, and the company has taken some steps to ensure the same.

RELATED:  Airtel Payments Bank Now Offers 1 Minute Talktime for Every Rupee Deposited in Bank!

Source: Telegraph

"Vodafone India is Possible Talks of Merger with Reliance Jio or Idea Cellular: Telegraph", 5 out of 5 based on 1 ratings.
Indian Startup Funding Investment Chart List 2016

Check out our Youtube Channel!

Jio Witnesses Data Speed Increase by 2X, Now Averages 9.9 Mbps

There is a good news for all Jio subscribers. According to TRAI MySpeed portal, Jio speeds have incr…

Daily Tech Wrap #1: Uber Fare Rise, Nokia 6 Launch, Sub-2k Smartphone, Aadhaar Numbers & More...

We are starting a new daily Tech Wrap series that bring you the most happening stories of the day in…

BHIM Payments App Sets Download Records, But the App Has Many Issues!

BHIM or Bharat Interface for Money was launched by Government on 30th December 2016, and within 5 da…

Lenovo P2 Launching in India Soon! Specifications, Price & More...

The much awaited Lenovo P2 with humoungous 5100 mAh battery is launching in India soon. Here are all…

Subscribe to Our Youtube Channel

who's online