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Idea-Voda merger creates a telecom behemoth but Airtel would remain leader

Krishna Kant/ 21 Mar 17 | 10:27 AM
Related to : Idea Cellular Ltd
 Idea Cellular Ltd
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The Idea-Vodafone combined entity would be the country’s largest telecom operator on both parameters — subscribers and revenues. But the combine would lag the current market leader,  Bharti Airtel, in terms of profitability and average revenue per user (ARPU). The combined entity would also start with a greater net debt than Bharti Airtel’s supported by relatively lower total revenues and ARPU Bharti Airtel would retain the pole position in terms of operating profit and revenue per user. The most profitable and heavy data users it seems continue to remain loyal to Bharti Airtel and the Vodafone-Idea would have to work hard to chip away these high-value users to improve their profitability.

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