Vodafone agrees to merge with Idea Cellular and becomes India’s largest mobile carrier with 395 million subscribers

Vodafone group is nearing an initial agreement to merge its Indian telecom Idea cellular Ltd, that would create a world largest telecom and it is most competitive over the market.

Several months ago, a new network named Reliance Jio was launched in September and announced to give a free internet over six months. Also, they started to provide more offer and deal to attract more customers and to maintain their service for long term.

By this month, the two network will decide and sign the preliminary agreement. And this new creation will combine customer base of 395 million and more than double of either Verizon and AT&T’s figures in the U.S.

In the month of January, they discussed the new plan and an enterprise value of $23.2 billion once the deal is finalized in 2018.

Vodafone will own 45.1% in the combined company after transferring 4.9% to the promoters of Idea cellular. The Birla and other promoters of Idea will hold 26% and rest will maintained by the public.

The emerging plan will result in the creation of largest telecom with 3G and 4G network plan, and it is sufficient to compete against other major operators, offering the attractive price to mobile service.

This service will hopefully start over the next year and surely the merging service makes the competition over Reliance jio.