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Idea Vodafone trying their best to retain customers before the merger

Idea-Vodafone trying their best to retain customers before the merger

Idea-Vodafone trying their best to retain customers before the merger
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By CNBC-TV18 May 11, 2018 1:39:39 PM IST (Published)

Idea Cellular and Vodafone are now out all guns blazing by sending out separate but similar mails to their customers, signalling that the telecom companies are set to close the merger deal that will create India's largest telecom company by next month, hence competing against Reliance Jio, The Economic Times reported.

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The mails started going out by the managing directors of Idea and Vodafone to their subscribers on Wednesday, the report said.
“The merger process is on track and expected to be completed in the first half of the calendar year 2018,” Himanshu Kapania, managing director of Idea Cellular, said in his mail.
The merged entity “will certainly enhance your mobile experience by providing greater broadband speeds, better voice quality and indoor coverage,” as said to The Economic Times.
Both the networks will have a combined user base of over 700 million, catering about 270,000 GSM sites and a mobile broadband network of 300,000 sites (3G and 4G).
India has over 1 billion mobile phone subscribers, the report said.
The Idea-Vodafone merger will put out Bharti Airtel from its top place with an almost 42% customer market share and 37% revenue market share, The Economic Times said adding that the operators are awaiting the final nod from the Department of Telecommunications.
Approvals from the capital markets regulator, National Company Law Tribunal and Competition Commission of India are already in place, the report added.
Aruna Sundararajan, Telecom Secretary, said that she did not foresee any difficulty in the merger of the telecom company and that it "should get done" by June on Thursday.
Vodafone’s mails said the company will have twice the number of towers. It added that the combined entity will invest in infrastructure and roll out smarter technologies, Internet of Things, better customer service, high-speed home broadband, digital wallets, cloud services and VoLTE technology, among others, the report said.
Last month, Balesh Sharma was appointed to be the chief executive officer of the merged entity, who, according to analysts, will have to hit the ground running as both operators have trailed Reliance Jio Infocomm and Airtel in rolling out 4G and Voice over LTE services and face an uphill battle to retain and add subscribers while regaining financial health, the report added.
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