Idea and Vodafone going to merge soon
The multinational companies Idea and Vodafone is proposed to be merged soon. As the battle between Reliance Jio is increasing, this is the best choice taken by the two cellular companies. This should cost about Rs 18,000 crore for getting extra coverage and spectrum. This will leads to better pricing (low cost) of plans in calling,messaging,internet and other offers given by the company. The operations will start by the end of 2017. The Swiss brokerage predicts that the spectrum range between 900 MHz and 2500 MHz bands.
After the merge the estimated subscribers range will be more than 390 million subscribers, also the profit of the company is estimated to increase by 40% which will be around 11 billion USD. While merging the Indian telecom company Idea and UK telecom company Vodafone that will be the biggest telecom company by the number of customers and the revenue from the market shares.
As the two companies combine, the spectrum of 3G/4G services increase across the circles. The merger will bring so many opportunities to the customers suffering from lesser connection range and low internet speed. The average 4G speed provided by the companies are between 25 to 35 Mbps after the merge the speed will increase to 50 to 60 Mbps said the CEO of Idea cellular network.
After the release of the Reliance Jio sim cards the subscribers have been decreased dramatically from all the cellular networks in India. The Bharti Airtel, had reported a 55% fall in its third quarter net profit to Rs 504 crore which is its worth in four years. Vodafone India had reported a 1.9% drop in its service revenue in late 2016 to Rs 10,556 crore. Idea had also hit by its revenue by a large amount since September 2016 from the release of Reliance Jio.