Idea-Vodafone merger and its effect Indian telecom customer
3 days ago, the merger was announced between Idea and Vodafone. This merger is a big step to fight against Jio and other telecom giants like Bharti Airtel. “As per the terms of the merger, Vodafone will have a 45% stake in the newly formed company and idea will have 26% stake in the same”.
Before this Merger, Bharti Airtel was the number one telecom company in India. Number two and number three spots were claimed by Idea and Vodafone respectively. After this merger, Bharti Airtel will be shifted to number two spot and Idea-Vodafone will get the top spot in the Indian telecom industry. After this news arrived, many experts tried to evaluate the impacts of this merger on the Indian customers.
We got various queries about the effect of this merger on the normal customer of India. Therefore, KNine Vox brings you the various points about the fact that how this merger will affect the Indian customer and Indian telecom market.
Fight against Jio:
Many experts are evaluating that this is a large scale fight against the Jio. The reliance Jio has badly affected the telecom giants and now companies are finding the ways to tackle the free services scheme given by Jio. Therefore, we can say that this merger can be resultant of the effect of Jio in the market.
After the merger, as the newly formed company will have a huge amount of resources, it can dare to give cheaper plans to the customer. Thus it is a possibility that the customers will get cheaper plans after the merger comes into existence.
With the collaboration of the resources of both big giants, there is only one possibility that the services will get better. Both the companies have a good amount of resources that will help each other to complete their requirements. Thus ultimately customer will get benefit.
May result in Monopoly:
After this merger, the company will become a largest telecom player in the market. This also reduces the number of telecom industries in the market as other telecom industries are also buying or selling resources. Thus if there are less number of players in the market, that is not good for customer as it can ultimately result in higher and costly plans.
Loss of jobs:
After the merger, it is expected that there will be a huge amount of layoffs and that will contribute into the unemployment. Thus this is also not good for the society as it will surely result in large number of layoffs and retrenchments in the telecom industry of India.
Thus, every merger has its own implications. Some can be good, some can be bad. As an analyst, we expect that it will be great for the customers of India. But we also lay a stress on the fact that there should be no monopoly type situation in this sector because that can be harmful for the customers in the long run. We are yet to actually feel the implications of this merger. We will keep you updated about this merger and its events. Till then stay tuned with KNine Vox for latest updates in this sector.