Vodafone Idea Limited

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Vodafone Idea Limited
Public
Traded as
IndustryTelecommunications
Predecessor
Founded31 August 2018; 10 months ago (31 August 2018)
HeadquartersMumbai (Corp.)[2][3]
Gandhinagar (Reg.)
Key people
Kumar Mangalam Birla
(Chairman)
Balesh Sharma
(CEO)[4][5]
ProductsMobile telephony
Wireless broadband
RevenueIncrease 37,823 crore (US$5.5 billion) (2019)[6]
Decrease -19,224 crore (US$−2.8 billion) (2019)[6]
Decrease -14,800 crore (US$−2.1 billion) (2019)[6]
Members393.25 million[7]
(April 2019)
ParentVodafone Group (45.1%)
Aditya Birla Group (26.0%)
Axiata Group (8.17%) [8]
Websitewww.vodafoneidea.com

Vodafone Idea Limited[9][10] is India's largest telecom operator[11] with its headquarter based in Mumbai, Maharashtra.[12][13] Vodafone Idea is a pan-India integrated GSM operator offering 2G, 3G and 4G(LTE) mobile services under two brands named Vodafone and Idea. Vodafone Idea also provides services including Mobile payments, IoT, enterprise offerings and entertainment, accessible via both digital channels as well as on-ground touch points, centers across the country.[14] As of April 2019, Vodafone Idea has 33.83% market share in India with 393.25 million subscribers,[15] [7] making it the largest mobile telecommunications network in India and Third largest mobile telecommunications network in the world.[10] Vodafone Idea has a broadband network of 340,000 sites, distribution reach of 1.7 million retail outlets.[14]

On 31 August 2018, Vodafone India merged with Idea Cellular, and was renamed as Vodafone Idea Limited. However, the merged entity continues using both the Idea and Vodafone brand.[9] Currently, the Vodafone Group holds a 45.1% stake in the combined entity, the Aditya Birla Group holds 26% and the remaining shares will be held by the public.[10] Kumar Mangalam Birla heads the merged company as the Chairman, with Balesh Sharma as the CEO.[14]

History[edit]

On 20 March 2017, Idea and Vodafone India announced that their respective boards had approved a merger of the two companies. The merger got approval from Department of Telecommunications in July 2018. On August 30, 2018, National Company Law Tribunal gave the final nod to the Vodafone-Idea merger [16] The merger was completed on 31 August 2018, and the newly merged entity is named Vodafone Idea Ltd.[17][18][10] The merger created the largest telecom company in India by subscribers and by revenue. Under the terms of the deal, the Vodafone Group holds a 45.2% stake in the combined entity, the Aditya Birla Group holds 26% and the remaining shares will be held by the public.[10]

Idea previously bought Spice Communications Ltd, operating as Spice Telecom, for over Rs 2,700 crore.[19]

Radio frequency summary[edit]

Vodafone Idea Limited owns spectrum in 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands across the country.[20]

Telecom circle coverage E-GSM
900MHz
Band 8
GSM / FD-LTE
1800MHz
Band 3
UMTS / FD-LTE
2100MHz
Band 1
TD-LTE
2300MHz
Band 40
TD-LTE
2500MHz
Band 41
Delhi Yes Yes Yes No Yes
Mumbai Yes Yes Yes No Yes
Kolkata Yes Yes Yes No Yes
Andhra Pradesh & Telangana Yes Yes Yes No Yes
Gujarat Yes Yes Yes No Yes
Karnataka Yes Yes Yes No No
Maharashtra & Goa Yes Yes Yes Yes Yes
Tamil Nadu Yes Yes Yes No No
Haryana Yes Yes Yes No Yes
Kerala Yes Yes Yes Yes Yes
Madhya Pradesh & Chhattisgarh Yes Yes Yes Yes Yes
Punjab Yes Yes Yes No Yes
Rajasthan Yes Yes Yes No Yes
Uttar Pradesh (East) Yes Yes Yes No Yes
Uttar Pradesh (West) Yes Yes Yes No Yes
West Bengal Yes Yes Yes No Yes
Assam No Yes Yes No Yes
Bihar & Jharkhand No Yes Yes No Yes
Himachal Pradesh No Yes Yes No Yes
Jammu and Kashmir No Yes Yes No Yes
North East No Yes Yes No Yes
Odisha Yes Yes Yes No Yes

Note: the above table contains Vodafone-Idea (merged entity) radio frequency details because they share their networks with each other via ICR (intra-circle roaming agreement) in some circles. For example, Idea has started its customers in Delhi access 4G services in May 2018 via the Vodafone network.[21][22]

Network Consolidation[edit]

By March 2019, Vodafone Idea Limited announced its network consolidation across major its major circles, easing our network issues faced by consumers and also enhancing its 4G coverage. Announcements of Network Consolidation were made as below

State No of Towns Covered No of Villages Covered Coverage area %/kms
Haryana[23] 145 6520 99.5%
ROWB[24] 878 37585 97%
Madhya Pradesh & Chhattisgarh[25] 664 53130 2,60,800 sq km area
Jammu and Kashmir[26] 110 3301
AP & Telangana[27] 391 19700 92.5%
Bihar & Jharkhand [28] 431 43503 79%
HP[29] 59 11929


Enhanced 4G Coverage details

State No of Towns Covered No of districts Covered Population %
Haryana[30] 22 76.08%
ROWB[31] 838 27 78%
Madhya Pradesh & Chhattisgarh [32] 633 77 52%
Jammu and Kashmir[33] 48 9 23.6%
AP & Telangana [34] 381 23 67%
Bihar & Jharkhand[35] 343 56 45.3%
HP[36] 45 8 43%

Punjab Network Consolidation

Vodafone Idea Ltd., India’s leading telecom service provider announced the successful consolidation of its radio network integration in Punjab service area. With this, Punjab is amongst the first ten circles to complete integration in the world’s largest network integration exercise which is currently underway in India.[37]

Rajasthan Network Consolidation Vodafone Idea Ltd., India’s leading telecom service provider announced the successful consolidation of its radio network integration in Rajasthan service area. With this, Rajasthan is amongst the first eleven circles to complete integration in the world’s largest network integration exercise which is currently underway in India.


According to telecom regulator's data, the pan India wireless subscriber base of Vodafone Idea at the end of March 2019 stood at 394.8 million. The statement on network consolidation in Punjab, said 4G services have been enhanced for both Vodafone and Idea customers in cities including Chandigarh, Ludhiana, Amritsar, Jalandhar, Patiala, Bathinda, Moga and Hoshiarpur.And in Rajasthan Jaipur,Jodhpur,Bikaner,Kota,Ajmer,Udaipur among others.[38]

Massive MIMO[edit]

Vodafone Idea deployed technologies such as massive MIMO, small cells, TDD sites to enhance coverage and network capacity in Mumbai and Delhi during March. As part of the modernization exercise, the company deployed more than 5000 massive MIMO, small cells and TDD sites across Church gate, Prabhadevi, Pali hill, Lokhandwala, Versova, Andheri, Jogeshwari, Bandra and Dadar among other regions[39] The company also deployed more than 4,000 Massive Mimo, small cells and TDD sites across the New Delhi and NCR region.[40]

Vodafone Idea Limited Rights Issue[edit]

Vodafone Idea Limited’s board of directors cleared the planned Rs 25,000-crore rights issue at a price of Rs 12.50 per equity share, a steep 61 per cent discount to the prevailing market rate on March 20th 2019. In a regulatory filing, the company said that the rights entitlement ratio has been fixed at 87 equity shares for every 38 equity shares held by eligible shareholders of the company on the record date, that is April 2, 2019. The issue opening date has been fixed for April 10 while the closing date has been set for April 24, 2019, the filing said.[41]

The rights issue price at Rs 12.50 is at a steep 58% discount to the current market price of Rs 30. We take a look at key details of the rights issue. [42]

·       The issue size aggregates to up Rs 25,000 crore.

·        The issue price is fixed at Rs 12.50, representing a steep discount or nearly 60% of the market price at 30.

·       The  entitlement ratio is fixed at 87 Equity Shares for every 38 Equity Shares held by the eligible shareholders of the Company on the record date


Promoters, UK's Vodafone Group Plc. and Aditya Birla Group, have infused Rs 17920 crore into Vodafone Idea via the Rs 25000-crore rights issue in funds that the telecom market leader will use to take on rivals Reliance Jio and Bharti Airtel. [43]


Besides a public participation of 1.2 times the offering, the promoters, too, applied for ₹90 crore higher than their aggregate rights entitlement. The promoters, Aditya Birla Group and UK's Vodafone Group, were allotted ₹17,920 crore increasing their shareholding to 71.57% over 71.33% earlier.[44]

See also[edit]

References[edit]

  1. ^ "Vodafone India and Idea Cellular successfully merged". Telecom Talk. 14 November 2018. Retrieved 9 July 2019.
  2. ^ investor-relations, Vodafone Idea Limited
  3. ^ investor support, Vodafone Idea Limited
  4. ^ Meet Our Management, Vodafone Idea Limited
  5. ^ Outcome of Board Meeting (PDF), Bombay Stock Exchange
  6. ^ a b c "Vodafone Idea Annual Results 2019". moneycontrol.com.
  7. ^ a b "Press Release on Telecom Subscription Data as on 30 April, 2019" (PDF). Telecom Regulatory Authority of India. 24 June 2019. Retrieved 24 June 2019.
  8. ^ "Axiata Share Holdings Pattern". Live Mint.com. Retrieved 17 August 2018.
  9. ^ a b "Merger of Idea Cellular and Vodafone India completed - creating India's largest telecom service provider" (PDF). Idea. Retrieved 31 August 2018.
  10. ^ a b c d e "Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015" (PDF). BSE. BSE. Retrieved 31 August 2018.
  11. ^ 31, ET Now | Aug; 2018; Ist, 05 02 Pm, Vodafone Idea Limited: Vodafone Idea replaces Airtel as India's largest telco, retrieved 4 September 2018
  12. ^ "India's Idea Cellular Will Use Nokia's Cloud Core". SDxCentral. Retrieved 4 September 2018.
  13. ^ "Vodafone Mini Stores in Mumbai Will Now Facilitate Tata Power Bill Payments via M-Pesa e-wallet - MySmartPrice News". MySmartPrice. 8 August 2018. Retrieved 4 September 2018.
  14. ^ a b c "Vodafone completes merger with Idea, creates India's largest mobile operator - Times of India". The Times of India. Retrieved 1 September 2018.
  15. ^ https://economictimes.indiatimes.com/industry/telecom/telecom-news/airtel-vodafone-idea-lose-30-mn-customers-jio-adds-9-4-mn-users-in-mar/articleshow/69432089.cms
  16. ^ Parbat, Kalyan; Sengupta, Devina (31 August 2018). "NCLT gives go-ahead to Idea-Vodafone merger". The Economic Times. Retrieved 1 September 2018.
  17. ^ "Idea approves merger with Vodafone India, to create India's largest telco". The Economic Times. Retrieved 20 March 2017.
  18. ^ Kurup, Rajesh (20 March 2017). "Idea Cellular board approves merger with Vodafone India; shares tank 9%". The Hindu Business Line. Retrieved 20 March 2017.
  19. ^ "Idea acquires Spice Telecom". Plugged.in.
  20. ^ Pan India 2016 spectrum holding data sheet (updated), Telecom Talk, retrieved 15 July 2018
  21. ^ Idea Cellular 4G Services Now Live in Delhi Via ICR With Vodafone, Telecom Talk, retrieved 15 July 2018
  22. ^ Idea to launch VoLTE in March, inks 4G ICR agreement with Vodafone, ET Telecom, retrieved 15 July 2018
  23. ^ www.ETTelecom.com. "Vodafone Idea completes radio network consolidation in Haryana - ET Telecom". ETTelecom.com. Retrieved 13 June 2019.
  24. ^ www.ETTelecom.com. "Vodafone Idea completes radio network consolidation in rest of West Bengal - ET Telecom". ETTelecom.com. Retrieved 13 June 2019.
  25. ^ "Vodafone Idea Successfully Completes Radio Network Consolidation In Madhya Pradesh And Chhattisgarh". Communications Today. Retrieved 13 June 2019.
  26. ^ "Vodafone Idea completes network integration in J&K". The Economic Times. 2 March 2019. Retrieved 13 June 2019.
  27. ^ Bureau, Our. "Vodafone Idea completes radio network consolidation in AP & Telangana". @businessline. Retrieved 13 June 2019.
  28. ^ Dua, Priyanka (24 February 2019). "Vodafone Idea radio network integration in Bihar, Jharkhand". https://www.gizbot.com/. Retrieved 13 June 2019. External link in |website= (help)
  29. ^ www.ETTelecom.com. "Vodafone Idea completes radio network consolidation in Punjab - ET Telecom". ETTelecom.com. Retrieved 13 June 2019.
  30. ^ www.ETTelecom.com. "Vodafone Idea completes radio network consolidation in Haryana - ET Telecom". ETTelecom.com. Retrieved 13 June 2019.
  31. ^ www.ETTelecom.com. "Vodafone Idea completes radio network consolidation in rest of West Bengal - ET Telecom". ETTelecom.com. Retrieved 13 June 2019.
  32. ^ "Vodafone Idea Successfully Completes Radio Network Consolidation In Madhya Pradesh And Chhattisgarh". Communications Today. Retrieved 13 June 2019.
  33. ^ "Vodafone Idea completes network integration in J&K". The Economic Times. 2 March 2019. Retrieved 13 June 2019.
  34. ^ Bureau, Our. "Vodafone Idea completes radio network consolidation in AP & Telangana". @businessline. Retrieved 13 June 2019.
  35. ^ Dua, Priyanka (24 February 2019). "Vodafone Idea radio network integration in Bihar, Jharkhand". https://www.gizbot.com/. Retrieved 13 June 2019. External link in |website= (help)
  36. ^ www.ETTelecom.com. "Vodafone Idea completes radio network consolidation in Punjab - ET Telecom". ETTelecom.com. Retrieved 13 June 2019.
  37. ^ "Vodafone Idea Successfully Completes Radio Network Consolidation In Punjab". Communications Today. Retrieved 13 June 2019.
  38. ^ India, Press Trust of (28 May 2019). "Vodafone Idea completes network consolidation in Punjab". Business Standard India. Retrieved 13 June 2019.
  39. ^ www.ETTelecom.com. "Vodafone Idea deploys 5,000 Massive MIMO, small cells, TDD sites in Mumbai - ET Telecom". ETTelecom.com. Retrieved 13 June 2019.
  40. ^ www.ETTelecom.com. "Vodafone Idea deploys 5G-ready sites in Delhi NCR - ET Telecom". ETTelecom.com. Retrieved 13 June 2019.
  41. ^ PTI. "Vodafone Idea board clears Rs 25,000-cr rights issue at Rs 12.50/equity". @businessline. Retrieved 13 June 2019.
  42. ^ "Vodafone Idea mega rights issue: Buy shares at one-third of market price; record date, price, other details". The Financial Express. 20 March 2019. Retrieved 13 June 2019.
  43. ^ "Vodafone Idea promoters contribute Rs 17,920 crore to rights issue following over-subscription". The Economic Times. 5 May 2019. Retrieved 13 June 2019.
  44. ^ Saxena, Ridhima (5 May 2019). "Vodafone Idea's ₹25,000 crore rights issue oversubscribed nearly 1.08 times". https://www.livemint.com. Retrieved 13 June 2019. External link in |website= (help)

External links[edit]