INSUBCONTINENT EXCLUSIVE:
Vodafone-Idea combination will help the firms compete with Mukesh Ambani's Reliance Jio.Vodafone Group Plc said it received approval from
the government to combine with Idea Cellular Ltd., a deal first announced 16 months ago.The Department of Telecommunication has approved the
merger provided arrears amounting to as much as Rs 72.5 billion ($1.1 billion) are paid to the government, according to the department's
The outstanding amount is for airwaves.The combination will create India's largest mobile-phone company and help the firms compete with
billionaire Mukesh Ambani's Reliance Jio Infocomm Ltd., which upended the world's second-largest mobile-phone market by offering free calls
Idea has reported losses every quarter since Jio started services in September 2016."Happy to get the merger letter," Vodafone Chief
Executive Officer-designate Nick Read told reporters after meeting with officials of India's telecom ministry
"We will remain competitive."Of the total arrears to be paid, more than Rs 39 billion is for aligning Vodafone's airwaves, allocated at a
fixed price in the pre-auction era, to market prices, while the rest is a one-time spectrum charge levied on billionaire Kumar Mangalam
Birla-led Idea, according to a telecom department's letter.The merger, announced in March 2017, will topple current market leader Bharti
and create a behemoth with 438.8 million subscribers.
