After receiving the final go from the National Company Law Tribunal (NCLT), Idea Cellular and Vodafone India finalized the mega merger to form single entity since Friday and the newly formed company will be known as Vodafone Idea Ltd – creating the largest telecom network of India.
Within a day after merger, Vodafone Idea Ltd. took over Bharti Airtel Ltd to reach top position with most number of users in the Indian telecom market after about twenty years. With a total of 408 million subscribers and a total of 1.7 million retailers, Vodafone Idea Ltd. holds a market share of 32.2% and stands at top position in nine out of 22 circles, generating Rs. 14,000 crore in synergies per year. As Kumar Mangalam Birla, the chairman of the company said, “Today, we have created India’s leading telecom operator. This is much more than just about creating a large business. It is about our vision of empowering and enabling a New India and meeting the aspirations of the youth of our country.”
The newly crowned India’s largest telco Vodafone Idea Ltd has an employee count of around 18,000 at its inception, after both individual entities shed around 8,000 employees in last financial term. The new workforce will be headed by Balesh Sharma, the CEO of Vodafone Idea Ltd. Talking about the need to improve service to become not just the biggest but also the strongest telco in India, Sharma believes that they have enough resources and strategies to provide their customers with best services and they will also introduce new technologies.
Addressing employees during a meeting on Friday, CEO Balesh Sharma said, “Vodafone Idea is the largest telecom player; it needs to use its size to become strongest and that is possible by giving customers a fantastic experience.” The company claims to hold a cash balance of Rs. 19,300 crore after paying the spectrum change charges to the telecom department and will also be able to raise funding worth ₹5,100 crore by monetizing its stake in a mobile tower company owned jointly by Bharti Infratel Ltd, Idea and Vodafone. Also, an investment of ₹60,000 crore is to be made by the company to meet the data demand; and all these new plans foresees benefits for Vodafone Idea to outsmart their competitors and produce same data capacity as other companies.