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Idea-Vodafone merger may prove challenging and costly, say experts
Posted on 5th August 2017
KOLKATA: Idea CellularBSE -0.70 % and Vodafone India plan to shortly kick off operational integration of their networks following the go-ahead by the competition regulator. But the exercise is likely to be fraught with challenges, possibly requiring tough and costly calls leading to consolidation of their ecosystem partners, experts said.

The Idea management, at an earnings call last week, said the company can “now plan the integration aspects” with approvals in place from the Competition Commission of India (CCI) for its merger with Vodafone India.

Brokerage house HSBC said “prompt CCI approval is a positive” but integration of Idea and Vodafone India’s operations will have to “be seamlessly executed” to ensure the merged entity is able to contest market disruption by Reliance Jio Infocomm that is expected to continue for several quarters.

Rajiv Sharma, HSBC director and telecom analyst, said the Idea-Vodafone operations integration “may not be easy as the two organisations differ significantly in terms of billing systems, network vendors and culture.”

Former Bharti Airtel CEO Sanjay Kapoor backed the view, saying an Idea-Vodafone merger would induce the need to make several tough choices around technology vendors, IT partners, CRM partners (such as third-party contact centres), and should naturally lead to realignment of existing agreements and contracts with their respective partners.

“Since the objective would be to build synergy and avoid duplication of network, systems, people resources and partners on a circle-by-circle basis, the consolidation at the ecosystem partners level is inevitable,” he said.

Related Companies: IDEA Cellular Limited   

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The Indian Space Research Organisation (Isro) is planning to launch Chandrayan-2 Mission around April this year. Chandrayaan-2 is the country's second mission to the moon.

The Union Minister of State (Independent Charge) of the Ministry of Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh said that Indian Space Research Organisation (Isro) is planning to launch Chandrayan-2 Mission around April this year.


RIL to take majority stake in BKC drive-in firm
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Ashok Leyland gets patent for tech to help improve fuel economy
Posted on 17th February 2018
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Predatory tariff: Telcos to be fined up to Rs 50 lakh a circle
Posted on 17th February 2018
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Reliance Jio offers 2,200 cash back on smartphone purchase
Posted on 17th February 2018
Reliance Jio has tied up with 22 handset manufacturers and will offer to new as well as existing subscribers cash back of `2,200 if they purchase a smartphone and recharge it with the operator’s `198 or `299 plans.

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