New Delhi: Inching closer to formation of country’s biggest telecom operator, Idea Cellular and Vodafone have made joint payment of Rs 7,248.78 crore under protest to the DoT for merging their mobile business.
“Idea Cellular and Vodafone have made payment under protest as demanded by the DoT for the merger. RS 3,926.34 crore have been paid in cash and bank guarantee of Rs 3,322.44 crore have been furnished,” an Idea official confirmed the development.
The DoT gave conditional nod for merger of these companies on July 9 and asked firms to meet the demand raised for taking merger on record.
The combined operations of Idea and Vodafone will create the country’s largest telecom operator worth over $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.
It will have the capacity to provide 4G spectrum in all telecom circles of the country.
According to a presentation, the combined 4G spectrum of both the firms are capable of offering up to 450 mbps broadband speed on mobile phones in 12 Indian markets.
