Government gives approval for Vodafone-Idea merger

The DoT has given the approval for the Vodafone-Idea merger as the telecom firms have paid the required dues

The Vodafone and Idea merger will  the world’s second-largest and India’s largest telecom firm—displacing Bharti Airtel Ltd—and will take on Reliance Jio.

The DoT has approved the merger of Vodafone India Ltd and Idea Cellular Ltd after the companies paid Rs. 3,900 crore in cash and Rs. 3,300 crore in bank guarantees towards one-time spectrum charges, a senior DoT official said. “We have given final approval for the merger as they have paid the required dues,” a senior official from the DoT said requesting anonymity. The new entity will be called Vodafone Idea Ltd.

While Rs. 3,900 crore cash is for transfer of spectrum from Vodafone to Idea for spectrum up to 4.4 MHz, the bank guarantee of Rs. 3,300 crore is for Idea Cellular’s airwaves beyond 4.4 MHz.

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