TIL Desk/Business/New Delhi/ The telecom ministry (DoT) has granted conditional approval to the long-pending merger of Vodafone India and Idea Cellular that will create the country’s largest mobile services operator, an official source said. “DoT has cleared the Vodafone-Idea merger today. They will have to meet conditions for final approval, the source told.
The department has asked for a payment of Rs 3,926 crore in cash pertaining to one-time spectrum charge of Vodafone. The amount can be paid either by Idea or Vodafone. The DoT has also asked Idea Cellular to furnish a combined bank guarantee of Rs 3,342 crore, 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 lakh crore), 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.
