• Jio Effect Affects Vodafone India

    If you thought Reliance Jio isn’t creating chaos in the telecom market, this will definitely knock your socks off. Vodafone Group Plc, the Indian subsidiary of Vodafone, and one of the big players in the Indian Telecom space, is looking for a merger with the top telecom players in the Indian market according to a report by The Telegraph.

    The newspaper reported that Vodafone is weighing a potential merger of its Indian arm with rivals as it seeks a turnaround in the subcontinent’s cut-throat mobile market. According to the report, the brand is looking towards the possibility of either tying up with Jio or other top service providers. The report also shed light on the possibility of Jio and Idea to merge together.

    Jio’s extremely aggressive plans, and the elongated tenure of the free offers definitely are causing chaos in the revenue generation of the competition.

    An industry executive said, on the condition of anonymity on Mint, “It is very unlikely for Mukesh Ambani to go for merger with Vodafone India because it is not (in) his DNA to write large cheques; his strategy is different. Birla group could likely be the one and the companies could opt for share swap. The conditions for that would be that Vodafone, as it is unlisted, will need to get valuation done and receive permission from Competition Commission of India.”

    The executive added, “With two decades of existence and almost a decade of being national operator, it is not too soon to expect merger for Vodafone and Idea.”

    The executive also stated that it’s highly unlikely for a brand like Vodafone to opt for a merger. The brand could go for a buyout instead.
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