DoT may approve Idea's proposal to increase FDI within a week: Report

The Department of Telecom (DoT) is likely to approve Idea Cellular's proposal of increasing Foreign Direct Investment (FDI) to 100 percent in the company within a week, ET reported.

"The company has submitted all the documents and we want to clear it at the earliest, it should happen maybe within a week," ET quoted a senior official.

The official said: "After the FDI clearance, the merger itself may be approved in a few days."

However, the second official as per the report informed that "Since Idea Cellular was acquiring spectrum from Vodafone India, they would have to pay the market price of administratively allocated, or non-auctioned, spectrum irrespective of whether a court case is on or a stay has been granted before the merger is approved.

"Idea Cellular is the one acquiring spectrum from Vodafone India, it will have to pay the market price of administratively allocated, or non-auctioned, spectrum regardless of whether or not there is a court case on stay or even when it is granted before the merger's finalization," official added.

To recall, the merger has been already approved by NCLT, Sebi, and CCI and merged entity will have 410 million customers and nearly 42 percent customer market share and nearly 37 percent revenue market share.

The combined company will have sufficient spectrum to compete effectively with the other major operators in the market.

It would hold 1,850 MHz, including circa 1,645 MHz of liberalized spectrum acquired through auctions.

It will be capable of building substantial mobile data capacity, utilizing the largest broadband spectrum portfolio with 34 3G carriers and 129 4G carriers across the country.

Idea Cellular and Vodafone Group Plc have also announced the proposed leadership team of the combined business, that will have Kumar Mangalam Birla as the non-executive Chairman, while Balesh Sharma will be the CEO and he will be responsible for the combined business strategy and its execution as well as driving integration.

Current Deputy managing director of Idea, Ambrish Jain will take charge as Chief Operating Officer of the new company.

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However, Sunil Sood will join the Vodafone Group AMAP Leadership Team and also help governance through Board memberships.