NEW DELHI | KOLKATA: British telecom major Vodafone<\/a> Group on Tuesday welcomed the government’s conditional clearance to Vodafone India’s merger with Idea Cellular<\/a> and said the company is upbeat about the Indian market and will remain invested here. 新德里|加尔各答:英国电信专业沃达丰(Vodafone)集团周二欢迎政府的条件许可,沃达丰印度的合并知道细胞并表示,该公司仍看好印度市场,并将投资在这里。
Outgoing Vodafone Group CEO Vittorio Colao<\/a> and his successor Nick Read met telecom minister Manoj Sinha<\/a> and secretary Aruna Sundararajan on Tuesday, a day after the Department of Telecommunications (DoT) gave a conditional nod to the merger that will create India’s No 1 telco, displacing Bharti Airtel<\/a>.
“We have always been a strong investor in India. We will remain that,” Read told reporters after the meeting. He said the merged entity “would remain competitive” amid continuing price wars in Indian market.
The current Vodafone group chief financial officer, Read will replace Colao as CEO on October 1. Colao, on his part, expressed hope that the new merged entity, Vodafone Idea Ltd, would be in place before he remits office.
Under the conditional merger approval given on Monday, the telecom department has demanded Rs 7,268 crore upfront payment towards dues it said the two telcos owe it. It is split between a bank guarantee of Rs 3,342 crore on account of one-time spectrum charges claimed from Idea, and cash payment of Rs 3,926 crore towards market price for non-auctioned airwaves held by Vodafone.
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Vodafone and Idea have not yet decided on whether to pay or challenge in courts the demands raised by the government, said a person aware of the development.
Another person said both companies have flagged some small discrepancies in the figures, and DoT has asked them to give it in writing. The differences, though, aren’t major and can at best make a difference of a couple of hundred crores in interest calculations, the person said.
Idea’s shares climbed 2.11% to close at Rs 55.70 on BSE on Tuesday, on hopes the Kumar Mangalam Birla–led company, when combined with Vodafone, will be far stronger and competitive.
Experts, however, said the merged entity will fall short of the $10-billion projected savings by way of cost\/capex synergies since the ground realities of the telecom market have changed following sustained price wars over the past 15 months, which has eroded average revenue per user (ARPUs) and operating incomes (Ebitda) at both telcos.
Nitin Soni, director at global rating firm Fitch, expects the merged entity’s cost\/capex synergies to be well below the projected $10 billion and likely to be realised over 3-4 years after merger closure, especially “since tower contracts are long term and site rationalisation cannot be concluded overnight”.
“Managements of merging entities tend to overstate the quantum of synergy benefits that are seldom fully realised,” Soni said. He pointed to sustained pricing disruption fuelled by Jio’s tariff aggression, which has led to a sharp reduction in Ebitda levels of both Idea and Vodafone between March 2017 and March 2018. Vodafone India’s Ebitda shrunk over 34% on year to Rs 7,766 crore in the year ended March 2018 while Idea’s operating income plunged nearly 32% on year to Rs 1,447.3 crore in the quarter ended March.
According to the Fitch director, a potent challenge for the combined entity “would be growing Ebitda level amid continuing price wars with Jio and Airtel”, especially since the present blended industry<\/a> ARPU of $1.5-1.7 is “simply not sustainable in the long run for telcos to make money.” Harsh Jagnani, telecom sector head at ICRA, said the integration of Vodafone and Idea “may see some erosion of subscribers, giving an opportunity to other operators, amid continuing intense competition and pricing pressures”.
Fitch’s Soni, however, said the promoters of Vodafone and Idea “would not have much trouble in lining up cash to make fresh equity infusions in the merged entity to spruce up 4G networks” as they could easily monetise their stakes in the Bharti Infratel-Indus Towers merged entity.
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即将离任的沃达丰集团首席执行官维托里奥·科劳尼克和他的继任者读了电信部长Manoj Sinha和部长阿鲁娜Sundararajan周二,此前一天美国电信(点)的合并将创造条件点头印度第一电信取代Bharti Airtel。
“我们一直是一个强大的投资者在印度。我们将继续,“阅读会议结束后告诉记者。他表示,合并后的实体“将保持竞争力”,继续在印度市场价格战。
在周一给出的条件批准合并下,电信部门已要求7268卢比前期付款费说,两国电信公司欠它。是分离的银行担保3342卢比的一次性频谱指控声称从想法,和现金支付3926卢比对市场价格non-auctioned沃达丰持有的电波。
沃达丰(Vodafone)和想法尚未决定是否支付法院提出的要求或挑战政府,说一个人意识到发展。
另一个人说,两家公司已经标记一些小差异的数据,和点要求他们把它写下来。不过,差别并不大,充其量可以几百卢比兴趣的差异计算,这位人士说。
想法的股价上涨2.11%,收于55.70卢比疯牛病周二,在希望Kumar Mangalam Birla-led公司沃达丰(Vodafone)相结合时,就会变得更为强大和有竞争力。
专家表示,合并后的实体将节省100亿美元的预计的成本/资本协同效应自地面现实电信市场已经改变了过去15个月持续的价格战之后,已经侵蚀了每用户平均收入(arpu)和操作(Ebitda)两家电信公司的收入。
主任Nitin索尼在全球评级公司惠誉预计合并后实体的成本/资本协同效应远低于预期的100亿美元,可能意识到3 - 4年后合并关闭,尤其是“自塔长期合同和站点合理化不可能在一夜之间结论”。
“合并实体的管理往往夸大了量子很少完全意识到的协同效益,”索尼说。他指出,持续的价格破坏Jio关税的推动下,侵略,导致大幅减少在息税前利润水平的想法和沃达丰2017年3月至2018年3月。沃达丰印度的息税前利润缩水超过34%在截至2018年3月7766卢比而想法的营业收入每年1447。3卢比暴跌近32%在3季度结束。
根据惠誉导演,一个强有力的挑战,合并后的实体“将Ebitda增长水平在持续的价格战Jio和旅馆”,尤其是目前的混合行业ARPU 1.5美元-1.7是“不可持续的长期的电信公司赚钱。,举行“严厉Jagnani、电信部门主管“国际机器人与自动化会议”表示,沃达丰(Vodafone)和想法”集成可能会看到一些用户的流失,给其他运营商的机会,在不断激烈的竞争和价格压力”。
惠誉的索尼表示,沃达丰的促进者和想法”就不会多麻烦排队现金让新股本注资在合并后的实体云杉4 g网络”,因为他们可以很容易地在Bharti Infratel-Indus塔合并实体的股份变现。
NEW DELHI | KOLKATA: British telecom major Vodafone<\/a> Group on Tuesday welcomed the government’s conditional clearance to Vodafone India’s merger with Idea Cellular<\/a> and said the company is upbeat about the Indian market and will remain invested here.
Outgoing Vodafone Group CEO Vittorio Colao<\/a> and his successor Nick Read met telecom minister Manoj Sinha<\/a> and secretary Aruna Sundararajan on Tuesday, a day after the Department of Telecommunications (DoT) gave a conditional nod to the merger that will create India’s No 1 telco, displacing Bharti Airtel<\/a>.
“We have always been a strong investor in India. We will remain that,” Read told reporters after the meeting. He said the merged entity “would remain competitive” amid continuing price wars in Indian market.
The current Vodafone group chief financial officer, Read will replace Colao as CEO on October 1. Colao, on his part, expressed hope that the new merged entity, Vodafone Idea Ltd, would be in place before he remits office.
Under the conditional merger approval given on Monday, the telecom department has demanded Rs 7,268 crore upfront payment towards dues it said the two telcos owe it. It is split between a bank guarantee of Rs 3,342 crore on account of one-time spectrum charges claimed from Idea, and cash payment of Rs 3,926 crore towards market price for non-auctioned airwaves held by Vodafone.
\n \n
Vodafone and Idea have not yet decided on whether to pay or challenge in courts the demands raised by the government, said a person aware of the development.
Another person said both companies have flagged some small discrepancies in the figures, and DoT has asked them to give it in writing. The differences, though, aren’t major and can at best make a difference of a couple of hundred crores in interest calculations, the person said.
Idea’s shares climbed 2.11% to close at Rs 55.70 on BSE on Tuesday, on hopes the Kumar Mangalam Birla–led company, when combined with Vodafone, will be far stronger and competitive.
Experts, however, said the merged entity will fall short of the $10-billion projected savings by way of cost\/capex synergies since the ground realities of the telecom market have changed following sustained price wars over the past 15 months, which has eroded average revenue per user (ARPUs) and operating incomes (Ebitda) at both telcos.
Nitin Soni, director at global rating firm Fitch, expects the merged entity’s cost\/capex synergies to be well below the projected $10 billion and likely to be realised over 3-4 years after merger closure, especially “since tower contracts are long term and site rationalisation cannot be concluded overnight”.
“Managements of merging entities tend to overstate the quantum of synergy benefits that are seldom fully realised,” Soni said. He pointed to sustained pricing disruption fuelled by Jio’s tariff aggression, which has led to a sharp reduction in Ebitda levels of both Idea and Vodafone between March 2017 and March 2018. Vodafone India’s Ebitda shrunk over 34% on year to Rs 7,766 crore in the year ended March 2018 while Idea’s operating income plunged nearly 32% on year to Rs 1,447.3 crore in the quarter ended March.
According to the Fitch director, a potent challenge for the combined entity “would be growing Ebitda level amid continuing price wars with Jio and Airtel”, especially since the present blended industry<\/a> ARPU of $1.5-1.7 is “simply not sustainable in the long run for telcos to make money.” Harsh Jagnani, telecom sector head at ICRA, said the integration of Vodafone and Idea “may see some erosion of subscribers, giving an opportunity to other operators, amid continuing intense competition and pricing pressures”.
Fitch’s Soni, however, said the promoters of Vodafone and Idea “would not have much trouble in lining up cash to make fresh equity infusions in the merged entity to spruce up 4G networks” as they could easily monetise their stakes in the Bharti Infratel-Indus Towers merged entity.
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