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Indian Cellular Networks Up-gradations Ahead : Reliance-Aircel Merger | Voda-Idea Merger | Airtel-Telenor Merger

By The Summarizers
To challenge the competitors, there must be timely up-gradations in ourselves to beat out them from the bottom. The same is happening in the cellular network world in India.

Reliance Jio ( latest & strongest ) entry with its unimaginable plans had terrified the whole industry. The ranking of 'The Best Networks in India' got shaken. Even Bharti Airtel, who tops most of the time in ranking is also looking for merger & acquisitions to remain in the top positions.

Other networks also planning to stay in the top names !

This summary of  Network Crisis will update you about 'What is happening in Cellular Network Space'?.

⇝Reliance-Aircel Merger
  • In 2016, talks between Reliance & Aircel gets started to become the 4th largest Cellular network in India. 
  • As per the Economics times, National Company Law Tribunal (NCLT) approves the merger on August 15,2017.
  • The Benefits from this merger are :-
    • Aircel & Reliance will transfer Rs.20,000 each of their debt to the new Joint Venture (merged) entity.
    • Thereby, Reliance total debt of Rs.45,000 cr will get reduce.
  • Till 2018, there may be expected merger of both of them.
⇝Vodafone-Idea Merger
  • At the beginning of 2017, Vodafone announced the merger with Idea Cellular to make the largest telecom.
  • Hindustan Times in its news stated that - 'Vodafone & Idea will have more spectrum than any other telecom operator, and can focus on its investments in offering cheaper high value products to its customers'.
  • But approvals for merger from SEBI & NCLT is still pending.
  • Benefits from this merger will be :-
    • The merged entity will cover 400 million customers & 41% revenue market share as per ET.
    • The customers will get unlimited voice & higher volume of high speed data as combined entity will hold around 1850 MHz of spectrum, highest in the industry which enable them to give 250 Mbps speed !!
  •  In this case also, there may be expected merger of both of them in 2018.
⇝Airtel-Telenor Merger
  • Telenor, whose head office in Norway with a global presence, entered in India in 2008 & today its services are available in six telecom circles in the country.
  • After Vodafone, Airtel was the 2nd who announced the merger in the Cellular space.
  • Airtel is the largest telecom network in India & to maintain the same position, mergers & acquisitions (M&As) are required & hence Telenor !
  •  There will be several benefits from this merger :-
    • Telenor's 44 million customers will be covered in merged entity.
    • Reach of Airtel will be widen in terms of connectivity, spectrum & customer base.
  • SEBI & NCLT has approved the merger in June, 2017. Now, the merger is subject to other approvals.
  • There is a possibility that merger will be completed in 2017 only. 

A short take - Why NCLT & SEBI approval is required for M&As ?
  • Companies Act, 2013 throw light on creating a new tribunal, National Company Law Tribunal which gives approvals for M&As on a fast pace. 
  • These approvals were earlier given by High Courts due to which these issues gets delay.
  • Securities & Exchange Board of India (SEBI) has a Take Over Code which provides & regulates take overs of listed companies plus saving the rights of minority shareholders in the company/merged company.
The Last Lines :~

Main Target for all the networks is to nullify the effect of Reliance Jio has given to market. But to work effectively, all have to provide free callings & other stuffs to compete with Reliance Jio, then only increased customer base can be beneficial for them. Year 2018 will bring more excitement as only customers will enjoy these benefits from the rivalries in Cellular Space :)


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