Vodafone - Idea Cellular combined entity will be biggest spectrum holder in India

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A proposed merger between both Vodafone and Idea Cellular will make the entity the biggest spectrum holder in the India, according to the analysts at Credit Suisse.

Credit Suisse says if combined the new found entity would grasp 35 per cent network capacity share and ultimately displace Jio, which is deemed to have 31 percent share.

Vodafone- Idea merger would grasp 35 percent network capacity share

"Individually, Vodafone and Idea appear quite lacking in 3G, 4G spectrum capabilities, but when combined, the spectrum footprint looks comparable with Jio and Bharti Airtel," Credit Suisse said in a note.However, the Swiss brokerage firm has also said that "Jio would continue to lead in capacity share of data networks by virtue of its large data spectrum holdings and exclusive 4G deployment."

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"If the country's No. 2 and No. 3 telcos merge, imbalances in the combined entity's revenue market share (RMS) and network capacity share would continue. It said the merged entity's 35 per cent network capacity share would be significantly behind its envisaged 42 percent RMS," the brokerage firm said.

The country has three leading mobile operators, Bharti Airtel, Vodafone and Idea but all are under pressure due to Reliance Jio Infocomm, which has shaken up the market by offering free voice and data to customers.

Vodafone surprised all by confirming speculation on the merger, by saying that the company is in talks with the Aditya Birla Group entity for a merger, but added nothing has been finalized yet.

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