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Airtel sees opportunity in Idea-Vodafone merger

A shorter version (reduced by 78.0%) can be found on IndiaSpeaks.

This is an extended summary, original article can be found here

Extended Summary:

Airtel sees opportunity in Idea-Vodafone merger.

2 carrier, and No.

Photo: Pradeep Gaur/Mint Bharti Airtel Ltd is gearing up to take advantage of regulatory hurdles that Vodafone India Ltd and Idea Cellular Ltd will face if their proposed merger goes through, according to two people familiar with the development.

2 carrier, and No.

A Bharti Airtel spokesperson declined to comment.

According to Telecom Regulatory Authority of India rules, an operator can hold a maximum of 50% revenue share, 50% subscriber share and 50% spectrum share in each band (excluding 800 Mhz) in each circle.

9 million respectively, which would mean a subscriber base of 382.

The subscriber base of the combined entity will represent 35.

The revenue market share (RMS) of Idea and Vodafone, as on end-September, 2016, stood at 18.

2 percentage points more than Bhartis 32.

This will lead to reduction in RMS by 240 basis points and effective RMS will stand at 39.

Hit to pre-synergy consolidated EBITDA is likely much higher (possibly ~12-15%), taking away a substantial part of the cost synergies of the potential merger, JP Morgan said, highlighting the compulsion of ceding revenue share in six circles as the primary reason.

Stats For Nerds:

Original Length 3892

Summary Length 1222

Summary Ratio: 68.6


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Posted Feb 17, 2017, 2:27 AM UTC

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