Vodafone Idea Limited

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Vodafone Idea Limited
Public
Traded as
IndustryTelecommunications
PredecessorVodafone India
Idea Cellular
Founded2018
HeadquartersMumbai (Corp.)[1][2]
Gandhinagar (Reg.)
Key people
Kumar Mangalam Birla
(Chairman)
Balesh Sharma
(CEO)[3][4]
ProductsMobile telephony, wireless broadband
RevenueDecrease 7,663.6 crore (US$1.1 billion) (2018)[5]
Decrease 7,202.2 crore (US$1.0 billion) (2018)[5]
Decrease 4,950.5 crore (US$690 million) (2018)[5]
Members409.37 million[6]
(February 2019)
ParentVodafone Group
Aditya Birla Group
Websitewww.vodafoneidea.com

Vodafone Idea Limited[7][8] is India's largest telecom operator[9] with its headquarter based in Mumbai, Maharashtra.[10][11] 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, advanced enterprise offerings and entertainment, accessible via both digital channels as well as on-ground touch points, centers across the country.[12] The company's vision is 'to create world class digital experiences to connect and inspire every Indian to build a better tomorrow'.[13] As of December 2018, Vodafone Idea has 35.61% market share in India with 418.745 million subscribers,[14][5] making it the largest mobile telecommunications network in India and second largest mobile telecommunications network in the world.[8] Vodafone Idea has a broadband network of 340,000 sites, distribution reach of 1.7 million retail outlets.[12]

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.[7] 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.[8] Kumar Mangalam Birla heads the merged company as the Chairman, with Balesh Sharma as the CEO.[12]

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 [15] The merger was completed on 31 August 2018, and the newly merged entity is named Vodafone Idea Ltd.[16][17][8] 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.[8]

Idea previously bought Spice Communications Ltd, operating as Spice Telecom, for over Rs 2,700 crore.[18]

Operations[edit]

Vodafone Idea Limited competes with other major mobile operators including Airtel, BSNL, MTNL and Reliance Jio. Tata DoCoMo – with whom Vodafone Idea Limited competed is now in the process of Merging their businesses with Airtel,.[19] Vodafone Idea Limited has gone far ahead of the rest of these competitors with a Revenue Market Share of over 32.2%.[7]

On 19 May 2010, in the 3G spectrum auction Vodafone Idea Limited paid 57.68 billion (US$800 million) for spectrum in 11 circles.[20] Vodafone Idea Limited launched its first 3G services in 2011.

As of September 2018, Vodafone Idea Limited offers 4G LTE services on its own spectrum in all the telecom circles.

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.[21]

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.[22][23]


Network Consolidation

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


Network Consolidation details [24][25][26][27][28][29]

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

Enhance 4G Coverage details

State No of Towns Covered No of districts Covered Population %
Haryana 22 76.08%
ROWB 838 27 78%
Madhya Pradhesh & Chhattisgarh 633 77 52%
Jammu and Kashmir 48 9 23.6%
AP & Telangana 381 23 67%
Bihar & Jharkhand 343 56 45.3%
HP 45 8 43%

Network Integration

Vodafone Idea announced the consolidation of its radio network integration in 8 telecom circles within five months.The integration of radio network will enable both Vodafone and Idea customers to enjoy a unified network experience on 2G, 3G and 4G in 8 telecom circles such as West Bengal, Haryana, HP, Assam, North East, AP & Telangana (excluding Hyderabad), J&K and MP & Chhattisgarh.[30]


Massive Mimo

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.[31] The company also deployed more than 4,000 Massive Mimo, small cells and TDD sites across the New Delhi and NCR region.

Financial Results[edit]

Q3 FY19: Vodafone Idea posted a consolidated loss of Rs 5,005.7 crore for the quarter ending December 2018. The teleco posted a loss of Rs 4,973.80 crore in the sequential quarter ended September 30, the first quarterly earnings reported by the combined entity. The total income was reported at Rs 11,982.8 core during the same quarter. The income increased by 52 per cent compared to Rs 7,878.6 crore in the previous July–September quarter.[32]


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. [33]

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.[34]

  • 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
  • The issue opens on 10th April 2019 and closes on 24th April 2019


Vodafone-Idea Limited Content Partnerships[edit]

In 2019, Vodafone Idea Limited empowered its customer services with varied content partnerships to encourage viewing on their mobile app. The first partnership was between Vodafone Idea Limited and Sun TV Network for its OTT platform, Sun NXT, which will now be accessible to Vodafone Idea users.[35]Sun NXT caters to Tamil, Telugu, Kannada and Malayalam audiences having over 50,000 hours of content. The partnership offers Vodafone and Idea’s customers access to Sun NXT’s exclusive digital content for free.

Post this, Vodafone Idea Limited announced a partnership with Shemaroo and Zee5 or similar cost effective content viewing options for their customers. [36][37]There was an additional partnership created between Idea and Amazon Prime for Idea’s Nirvana postpaid users[38]

See also[edit]

References[edit]

  1. ^ investor-relations, Vodafone Idea Limited
  2. ^ investor support, Vodafone Idea Limited
  3. ^ Meet Our Management, Vodafone Idea Limited
  4. ^ Outcome of Board Meeting (PDF), Bombay Stock Exchange
  5. ^ a b c d ""Vodafone Idea Q2 Results"". TeleAnalysis. Retrieved 18 December 2018.
  6. ^ "Press Release on Telecom Subscription Data as on 28 February, 2019" (PDF). Telecom Regulatory Authority of India. 18 April 2019. Retrieved 19 April 2019.
  7. ^ a b c "Merger of Idea Cellular and Vodafone India completed - creating India's largest telecom service provider" (PDF). Idea. Retrieved 31 August 2018.
  8. ^ a b c d e "Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015" (PDF). BSE. BSE. Retrieved 31 August 2018.
  9. ^ 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
  10. ^ "India's Idea Cellular Will Use Nokia's Cloud Core". SDxCentral. Retrieved 4 September 2018.
  11. ^ "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.
  12. ^ 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.
  13. ^ "Vodafone Idea Limited | An Aditya Birla Group & Vodafone partnership". www.vodafoneidea.com. Retrieved 1 September 2018.
  14. ^ "Press Release on Telecom Subscription Data as on 31st January, 2019" (PDF). www.trai.gov.in. 21 March 2019.
  15. ^ Parbat, Kalyan; Sengupta, Devina (31 August 2018). "NCLT gives go-ahead to Idea-Vodafone merger". The Economic Times. Retrieved 1 September 2018.
  16. ^ "Idea approves merger with Vodafone India, to create India's largest telco". The Economic Times. Retrieved 20 March 2017.
  17. ^ Kurup, Rajesh (20 March 2017). "Idea Cellular board approves merger with Vodafone India; shares tank 9%". The Hindu Business Line. Retrieved 20 March 2017.
  18. ^ "Idea acquires Spice Telecom". Plugged.in.
  19. ^ Raj, Amrit (21 October 2017). "The shakeup in India's telecom sector". www.livemint.com. Retrieved 21 April 2018.
  20. ^ Pahwa, Nikhil (19 May 2010). "India's 3G Auction Ends; Operator And Circle-Wise Results". MediaNama.
  21. ^ Pan India 2016 spectrum holding data sheet (updated), Telecom Talk, retrieved 15 July 2018
  22. ^ Idea Cellular 4G Services Now Live in Delhi Via ICR With Vodafone, Telecom Talk, retrieved 15 July 2018
  23. ^ Idea to launch VoLTE in March, inks 4G ICR agreement with Vodafone, ET Telecom, retrieved 15 July 2018
  24. ^ www.ETTelecom.com. "Vodafone Idea completes radio network consolidation in Haryana - ET Telecom". ETTelecom.com. Retrieved 10 April 2019.
  25. ^ www.ETTelecom.com. "Vodafone Idea completes radio network consolidation in rest of West Bengal - ET Telecom". ETTelecom.com. Retrieved 10 April 2019.
  26. ^ "Vodafone Idea Successfully Completes Radio Network Consolidation In Madhya Pradesh And Chhattisgarh". Communications Today. Retrieved 10 April 2019.
  27. ^ "Vodafone Idea completes network integration in J&K". The Economic Times. 2 March 2019. Retrieved 10 April 2019.
  28. ^ Bureau, Our. "Vodafone Idea completes radio network consolidation in AP & Telangana". @businessline. Retrieved 10 April 2019.
  29. ^ Dua, Priyanka (24 February 2019). "Vodafone Idea radio network integration in Bihar, Jharkhand". https://www.gizbot.com/. Retrieved 10 April 2019. External link in |website= (help)
  30. ^ Lead, Telecom (3 February 2019). "Vodafone Idea CTO reveals network integration strategy". TelecomLead. Retrieved 28 February 2019.
  31. ^ www.ETTelecom.com. "Vodafone Idea deploys 5,000 Massive MIMO, small cells, TDD sites in Mumbai - ET Telecom". ETTelecom.com. Retrieved 10 April 2019.
  32. ^ "Vodafone Idea Reports Rs 5,005 Crore Loss For October–December". NDTV.com. Retrieved 28 February 2019.
  33. ^ PTI. "Vodafone Idea board clears Rs 25,000-cr rights issue at Rs 12.50/equity". @businessline. Retrieved 10 April 2019.
  34. ^ "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 10 April 2019.
  35. ^ www.ETTelecom.com. "Vodafone Idea partners Sun NXT to offer digital South Indian content to users - ET Telecom". ETTelecom.com. Retrieved 10 April 2019.
  36. ^ "Vodafone Idea and Shemaroo forge content partnership - Exchange4media". Indian Advertising Media & Marketing News – exchange4media. Retrieved 10 April 2019.
  37. ^ Staff (19 March 2019). "Vodafone Idea inks a deal with Zee Entertainment to offer ZEE5 content to its customers". BGR India. Retrieved 10 April 2019.
  38. ^ DelhiMarch 15, Shweta Ganjoo New; March 19, 2019UPDATED:; Ist, 2019 09:58. "Now Idea users too get one year Amazon Prime membership for free, but not all and conditions apply". India Today. Retrieved 10 April 2019.

External links[edit]