Vodafone-Idea merger a big corporate milestone: Telecom Secretary
This is a good competitive scenario and good configuration for India to have, she said.
New Delhi: The government on Friday termed the merger of Idea and Vodafone in India as a big corporate milestone and said the move paves the way for a "good competitive scenario" in India.
Telecom Secretary Aruna Sundararajan sought to allay any fears of cartelisation in the market saying it is "unlikely". "This is a good competitive scenario and good configuration for India to have," she told reporters here.
Earlier on Friday, Vodafone and Idea Cellular announced completion of the USD 23-billion merger of their India operations creating the country's largest operator to take on competition from the likes of Reliance Jio and Airtel. The merged entity called Vodafone Idea Ltd will have a subscriber base of over 40 crore and a market share of over 35 per cent.
"The market is heading for consolidation and stability and that is a big milestone... The biggest corporate merger has happened in the sector," she said. The consolidation will pave the way for three large private players and one large public sector player, she noted adding that this is "a good position for India to be in" just like mature markets.