<ul><li><keyword id="1553175" type="General" weightage="100" keywordseo="vodafone-idea" source="Orion">Vodafone Idea</keyword> today announced the conversion of interest on its spectrum and AGR dues to equity, making the government the largest shareholder.</li><li>The government intervention might help Vodafone Idea raise debt to fund its business, but finding equity investors still remains a major task for the telco.</li><li>Analysts are divided on the matter, with some suggesting that this could prove to be a useful intervention for the sector as a whole, while others expressed apprehension over the government’s ability to steady the ship.</li></ul>The Indian government has done what many experts and analysts did not think it would – pick up a stake in a telecom operator that was on the brink of a collapse just a few months ago. The message is loud and clear – the government does not want the Indian telecom sector to become a <a href="https://www.businessinsider.in/business/telecom/news/what-if-vodafone-idea-dies/articleshow/85127937.cms">duopoly of Reliance Jio and Airtel</a>. However, the market response to the announcement was brutal – Vodafone Idea’s shares dipped by as much as 19% in early trade yesterday (January 11). As of 3:30 p.m., it was down by over 20%, suggesting that the market is spooked by the government’s entry as a shareholder. <div type="image" title="Vodafone Idea 15_09_21 to 11_01_22." msid="88836372" hostid="261" caption="&amp;lt;p&amp;gt;Vodafone Idea share price has fallen by nearly 21%.&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="What is on street’s mind" comment="subhead" text="What is on street’s mind">What is on street’s mind</cmsannotation> The likely question that the market is asking is, does the government need to own yet another telco? The government’s ability to steer the ship of Vodafone Idea and government-run BSNL together might be reason enough to doubt, as an investor, but this does not have to be the case if the government leaves Vodafone Idea’s management alone. <cmsannotation type="cmsannotation" annotationid="Glass half full?" comment="subhead" text="Glass half full?">Glass half full?</cmsannotation> On the flipside, some analysts believe this could actually prove to be useful for the stakeholders of both Vodafone Idea and BSNL MTNL – the subscribers, investors as well as the government. Deven Choksey, the managing director of KRChoksey Shares &amp; Securities, says that a merging Vodafone Idea with BSNL could prove to be a timely decision, especially with the 5G era almost here. Vodafone Idea’s wireless coverage and BSNL’s pan-India wired coverage could complement each other very well, and help both the companies take on rivals Reliance Jio and Airtel. "If Vodafone Idea and BSNL enter into an asset sharing (active / passive, Inter Circle Roaming) agreement on 2G, 4G &amp; later 5G, it could end up being a win-win for both the companies, allowing both the companies to leverage each of their assets then its their customer base which will benefit," said Errol Dale Pinto, former circle enterprise head of Vodafone Idea. "This is likely the best arrangement for Vodafone Idea, allowing it to lighten the burden on its books and avoid the interest costs, clearing the path for its profitability &amp; between PE Funds &amp; the Govt, the latter works out better in control &amp; manoeuvrability for the revival of VI," he added. <div type="image" title="Telecom market share (active users) Apr20 - Oct21." msid="88836441" hostid="261" caption="&amp;lt;p&amp;gt;Telecom market share.&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="Easier said than done" comment="subhead" text="Easier said than done">Easier said than done</cmsannotation> However, realising these synergy gains is easier said than done. Some analysts believe that the government picking up a stake in Vodafone Idea ‘might be a remedy worse than the disease’. <div type="Video" msid="85209717" hostid="261" title="What if Vodafone Idea dies and can it be saved?" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=85209717"></div> “Converting Vodafone Idea into a government company, or merging it with a government company might probably be a remedy worse than the disease,” <a href="https://www.businessinsider.in/business/telecom/news/government-picking-up-a-stake-in-vodafone-idea-might-be-a-remedy-worse-than-the-disease-say-experts/articleshow/86221662.cms">said</a> R Chandrashekhar, former secretary of Telecom and Information Technology, in an <a href="https://www.businessinsider.in/business/telecom/news/what-if-vodafone-idea-dies/articleshow/85127937.cms">exclusive interview</a> with Business Insider in August <a href="https://www.businessinsider.in/business/telecom/news/minimising-the-fallout-from-a-vodafone-idea-collapse-heres-what-lenders-and-experts-suggest/articleshow/85171047.cms">last year</a> when talks of a telecom relief package were still doing the rounds. And then there’s the massive elephant in the room – the problem of a culture clash. “Bringing together an Indian company, a global company culture and a public sector company’s culture together, and managing the fate of those 1 lakh public sector employees – who in the private sector has the wherewithal to do it?” asked Sanjay Kapoor, former chief executive officer (CEO) of Bharti Airtel, in an interview last year. <cmsannotation type="cmsannotation" annotationid="Who will fund Vodafone Idea’s capex?" comment="subhead" text="Who will fund Vodafone Idea’s capex?">Who will fund Vodafone Idea’s capex?</cmsannotation> What Vodafone Idea needs now is to spend on expanding its network capabilities and gearing up for the 5G era – and this means it needs money right now. The recent tariff hikes might have helped ease the short-term cash flow crunch to a certain extent, but it needs more than just a short-term boost. “Vodafone Idea is still not investing enough on capex. They still have to look for equity investors, and at least increase their capex investment in line with Bharti and Jio,” said Nitin Soni, senior director at Fitch Ratings in a conversation with <a href="https://twitter.com/CNBCTV18News/status/1480745971818450945">CNBC-TV18</a>. According to Dale, a robust 5G launch would need a Telco to invest around ₹20,000-25,000 crores including capex, spectrum &amp; critically a maximum Fibre backbone. With this announcement, the telco fulfils a significant portion of that requirement and makes it 5G Auction ready. <cmsannotation type="cmsannotation" annotationid="Too little, too late and too slow?" comment="subhead" text="Too little, too late and too slow?">Too little, too late and too slow?</cmsannotation> While a Vodafone <keyword id="12931527" type="General" weightage="20" keywordseo="idea-bsnl-merger" source="Orion">Idea-BSNL merger</keyword> could theoretically be pulled off, it might still be too little, too late and perhaps too slow in a sector that moves as fast as telecom. Especially, when considering the fact that Vodafone Idea has lost nearly 64 million subscribers since the beginning of 2020. Both Reliance Jio and Airtel are blazing past with their 5G investments and partnerships – Jio <a href="https://www.businessinsider.in/tech/news/jio-google-5g-announcement-google-cloud-reliance-retail-jiomart/articleshow/83807617.cms">announced</a> a partnership with Google back in June last year, while Airtel has <a href="https://www.airtel.in/press-release/11-2021/airtel-conducts-indias-first-5g-trial-in-the-700-mhz-band-in-partnership-with-nokia">conducted</a> its own 5G trials already, in addition to demonstrating enterprise use cases. For what it’s worth, Vodafone Idea <a href="https://telecom.economictimes.indiatimes.com/news/5g-trials-vodafone-idea-demos-network-slicing-over-5g-sa-with-nokia-in-gandhinagar/88148337">joined</a> the party, too, albeit a little late. While Vodafone Idea is still in talks with vendors for sourcing 5G equipment, its rivals Jio and Airtel are a little ahead, having either <a href="https://www.business-standard.com/article/companies/reliance-jio-gets-approval-to-buy-5g-gear-from-trusted-vendors-122010400023_1.html">received approval</a> or <a href="https://telecom.economictimes.indiatimes.com/news/airtels-5g-strategy-riding-on-local-manufacturing-in-talks-with-all-vendors/80561557">receiving confirmation</a> from vendors like Nokia and Ericsson. However, Choksey says that by converting the spectrum and adjusted gross revenue (AGR) dues into equity, Vodafone Idea now has more room to borrow money. Money that it could use to fund its capital expenditure for improving its network quality, investing in new technologies and bidding for the upcoming 5G spectrum. The government has helped Vodafone Idea to survive, but to thrive it needs money and it needs it now. While analysts are divided on how this will work out for Vodafone Idea’s stakeholders, the next few months are going to prove critical for the telco’s future. Update: A <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/centre-wants-no-role-in-vodafone-ideas-ops-plans-to-exit-once-firm-stabilises/articleshow/88843863.cms">report</a> by The Economic Times states that the government does not want to run Vodafone Idea’s operations, citing unnamed senior government officials. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-the-government-is-now-the-biggest-shareholder-in-vodafone-idea/articleshow/88824061.cms">The government is now the biggest shareholder in Vodafone Idea</a> <a href="https://www.businessinsider.in/business/telecom/news/government-picking-up-a-stake-in-vodafone-idea-might-be-a-remedy-worse-than-the-disease-say-experts/articleshow/86221662.cms">Government picking up a stake in Vodafone Idea ‘might be a remedy worse than the disease’, say experts</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-vodafone-idea-and-jio-welcome-telecom-relief-package-but-analysts-are-divided-on-whether-it-is-enough/articleshow/86252002.cms">Airtel, Vodafone Idea and Jio welcome telecom relief package, but analysts are divided on whether it is enough</a>

Government owning Vodafone Idea is just half the task – the other half is to find the money

<ul><li>A huge decision by the Narendra Modi government to merge two ailing state-owned telecom operators.</li><li>MTNL will be merged with BSNL. It will take time and in the mean time, MTNL will act as a subsidiary of BSNL. </li><li>BSNL will raise ₹15,000 crore via sovereign-backed bonds as part of the revival plan.</li><li>Employees will be offered a voluntary retirement plan-- 125% of their salary for the remaining years until retirement.</li></ul>A huge decision by the Narendra Modi government to merge two ailing state-owned telecom operators. MTNL will be merged with BSNL. The process will take time and in the mean time, MTNL will act as a subsidiary of BSNL. BSNL will raise ₹15,000 crore via sovereign-backed bonds as part of the revival plan. This is likely to cause some anxiety among the over 2 lakh staff at the two companies. Employees will be offered a voluntary retirement plan-- 125% of their salary for the remaining years until retirement. "Neither BSNL and MTNL will be closed or sold or disinvested. We want to make it more competitive," Union Minister <keyword id="6354886" type="PERSON" weightage="20" keywordseo="Ravi-Shankar-Prasad">Ravi Shankar Prasad</keyword> said at a press conference today (October 23). "Other telcos spend 5% on human resources, BSNL and MTNL were spending 70% of their revenue on the same," Prasad said underscoring the importance of shedding manpower at the two companies. For example, if a 53-year old employee opts of voluntary retirement, he/she will get 125% of the salary for the next seven years until retirement. This won't be forced, it will be 'voluntary' retirement, Prasad explained. In addition, soveriegn bonds worth ₹15,000 crore will be raised and serviced by BSNL to get the resources needed to compete in a tough telecom market led by Mukesh Ambani-owned Reliance Jio, Sunil Mittal-led Airtel, and the Birla Group led Vodafone Idea. The government also plans to make BSNL sell its 4G spectrum for additional money. BSNL is saddled with a debt of ₹13,000 crore, and accumulated losses estimated at ₹14,000 crore. "These are strategic assets of India. You know that BSNL plays an important role when there are natural disasters in Nepal, Kashmir and other parts of India," Prasad said explaining why the Indian government wouldn't like to sell the two companies. SEE ALSO: <a href="https://www.businessinsider.in/unpaid-bsnl-employees-react-to-the-current-crisis/articleshow/71063961.cms" data-type="tilCustomLink" target="_blank">An unpaid BSNL employee believes the company will survive the current turmoil</a>

India decides to merge MTNL and BSNL and offer voluntary retirement to many of its employees

<ul><li><keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword> offered some 10,000 employees an average increment of 9% along with 97% bonus pay. </li><li>Airtel offered an average raise of 7.5% to nearly 16,000 employees this June. </li><li>Jio is expected to roll out increments in August this year, while the company offered 90% bonus to roughly 15,000 employees.</li></ul>In a relief to its employees, telecom service provider Vodafone Idea gave an average increment of 9% to 10,000 employees <a href="https://economictimes.indiatimes.com/jobs/hikes-at-vodafone-idea-a-sign-of-green-shoots/articleshow/70253649.cms?from=mdr">according to an ET report</a>. The telco also extended a 97% bonus pay, the compensation above the base salary. This is the first time in two years since the merger, that the employees have received a hike. While the top performing employees got a 17% raise in their annual compensation. The employees did not receive hikes in the last two years due to mounting losses. The telecom player might have missed one increment cycle but its increments are better than that of its rivals — Airtel and Jio. Airtel offered an average raise of 7.5% to nearly 16,000 employees in June, the same as last year. Jio is expected to give it hikes in August this year. The merger between Vodafone and Idea Cellular had shrunk the total employee base. Vodafone laid off over 100,000 employees, at the time of merger. <keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword>’s entry and its deep discounts has disrupted the telecom market, stressing all its players and affecting their profits. It has also been eating into the subscriber market as well. Jio added nearly 16 million rural subscribers during the last quarter of 2018-19, according to the <a href="https://www.business-standard.com/article/companies/reliance-jio-gains-from-incumbents-loss-in-rural-india-says-trai-report-119071501546_1.html">Telecom Regulatory Authority of India (TRAI) Performance Indicator Report</a>. While Bharti Airtel and Vodafone Idea lost around 20 million and 13 million, respectively. Vodafone Idea shares rose by 2.97% to ₹12 in morning trade today. See also: <a href="https://www.businessinsider.in/the-fate-of-180000-bsnl-unpaid-employees-hangs-in-balance-as-fears-of-a-shutdown-loom-large/articleshow/69954923.cms">The fate of 180,000 BSNL unpaid employees hangs in balance as fears of a shutdown loom large</a> <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-jio-collaborates-with-mark-zuckerbergs-facebook-to-launch-digital-literacy-program-in-india/articleshow/70066803.cms">Mukesh Ambani and Mark Zuckerberg join hands to target millions of India's first time internet users</a> <a href="https://www.businessinsider.in/5g-spectrum-auctions-might-have-a-buy-now-pay-later-scheme/articleshow/70190419.cms">5G spectrum auctions might have a ‘buy now pay later’ scheme</a>

Vodafone Idea offers salary hike to employees after two years

What if Vodafone Idea dies?

<img class="gwt-Image" src="/photo/57750859.cms" />Analysts and experts of the <keyword id="112601" type="UNKNOWN" weightage="20" keywordseo="indian-telecom-industry">Indian telecom industry</keyword> have expressed hopes that the <a href="http://www.businessinsider.in/idea-to-merge-with-vodafone-india-time-to-say-hello-to-indias-biggest-telco/articleshow/57728557.cms">Vodafone-Idea merger</a> announced yesterday will act positive for both industry and consumers in the long run. 
 However, they have also said that in the short run, both Vodafone India and Idea might lose customers and revenue to present market leader <keyword id="6354287" type="CITY" weightage="20" keywordseo="Bharti-Airtel">Bharti Airtel</keyword>, which would rank second in the market once the new entity is born. <a href="http://www.businessinsider.in/reliance-jio-underreported-revenue-by-rs-64-cr-claims-draft-audit-report/articleshow/57531731.cms">Reliance Jio Infocomm</a> could also gain some customers and revenue from Voda and Idea if they get too involved in the <a href="http://www.businessinsider.in/idea-to-merge-with-vodafone-india-time-to-say-hello-to-indias-biggest-telco/articleshow/57728557.cms">merger complexities</a>. 
 
Also read: <a href="http://www.businessinsider.in/reliance-jio-will-be-unfazed-by-vodafone-idea-merger-heres-why/articleshow/57509811.cms">Reliance Jio will be unfazed by Vodafone-Idea merger. Here’s why</a> 
 
Sanjay Kapoor, ex CEO of Bharti Airtel told ET that in the short term, the industry won’t see much impact because of the merger, since Jio would continue winning hearts because of network capacity and low prices. 
 
Also read: <a href="http://www.businessinsider.in/vodafone-ceo-vittorio-colao-assures-employee-job-safety-post-vodafone-idea-merger/articleshow/57733717.cms">Vodafone CEO Vittorio Colao assures employee job safety post Vodafone-Idea merger</a> 
 
"Idea and Vodafone could end up losing customers and revenue in the short term, if they take their eyes off the ball due to operational complexities associated with any merger," he said. Kapoor, in fact, expects that Airtel and Jio might come together to pull customers from Vodafone and Idea. 
 
Also read: <a href="http://www.businessinsider.in/unlimited-calls-2gb-data-per-day-bsnl-seems-to-follow-jios-steps/articleshow/57685871.cms">Unlimited calls, 2GB data per day; BSNL seems to follow Jio’s steps</a> 
 Rajan Mathews, director general of the <keyword id="105151" type="ORGANIZATION" weightage="20" keywordseo="Cellular-Operators-Association-of-India">Cellular Operators Association of India</keyword> (COAI), which represents Airtel, Vodafone India, Idea and Reliance Jio, also said that both merging companies could lose customers if they don’t conclude the merger exercise soon. 
 
Brokerage Motilal Oswal also shared his two cents, saying, "Since the telecom market is highly competitive, given Jio's capacity game, there is a major market share dilution risk if the deal takes a prolonged period to fructify." 
 
(Image source: Financial Times)

Voda-Idea merger expected to benefit telecom industry, say experts

<img class="gwt-Image" src="/photo/57307563.cms" />Ever since <a href="http://www.businessinsider.in/searchresult.cms?query=reliance+jio&amp;sortorder=effectivedate">Reliance Jio</a> has entered the <a href="http://www.businessinsider.in/searchresult.cms?query=indian+telecom+sector&amp;sortorder=effectivedate">telecom space</a>, the industry went through a total make over- there were tariff battles, infighting, and of course consolidation. 
 
It was expected that the industry will see consolidation and now with major players taking in the smaller ones, the telecom industry is mainly a playground for three plus one major players, <a href="http://www.businessinsider.in/searchresult.cms?query=airtel&amp;sortorder=effectivedate">Airtel</a>, <keyword id="6354504" type="UNKNOWN" weightage="20" keywordseo="Reliance-Jio">Reliance Jio</keyword>, <a href="http://www.businessinsider.in/searchresult.cms?query=vodafone+idea+merger&amp;sortorder=effectivedate">Idea+Voda</a>, and<a href="http://www.businessinsider.in/searchresult.cms?query=bsnl&amp;sortorder=effectivedate"> BSNL</a>. 
 The additional spectrum that <keyword id="15491" type="COMPANY" weightage="100" keywordseo="Airtel">Airtel</keyword> will acquire from <keyword id="6359476" type="CITY" weightage="100" keywordseo="Telenor">Telenor</keyword> will help Airtel to increase its 4G presence across the country. Telenor’s exit from India will leave Bharti Airtel with 1800MHz in some of the most critical telecom circles including Bihar, UP West, and UP east. However the completion of the deal will take 6-9 months as it will have to go through regulatory clearances but it is likely to come through before <keyword id="4210744" type="UNKNOWN" weightage="20" keywordseo="idea-voda">Idea-Voda</keyword> merger due the complexities of the Idea-Voda merger. 
 
It is also expected that with Idea-Voda merger, Airtel will lose its number one position in the industry and buying Telenor will not change that as the Idea-Voda merged entity stands to become India’s largest telecom company with revenues of over Rs. 80,000 crore. 
 Although, all the consolidation is happening after the entry of <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> led Reliance Jio but it is certainly not the reason for the consolidation, or at least the only reason, it was expected that the telecom industry will see consolidation and emergence of bigger players. 
 
With the entry of Jio and the consolidations, the telecom industry of India is expected to have smooth functioning in some time when the dust settles down. 
 
Here’s what Airtel’s deal is all about

Bharti Airtel buys Telenor before Idea-Voda merger, is this the Jio effect?

Sunil Mittal-led <keyword id="6354287" type="CITY" weightage="20" keywordseo="Bharti-Airtel">Bharti Airtel</keyword> is likely to acquire <keyword id="6359475" type="CITY" weightage="100" keywordseo="Tata-Teleservices">Tata Teleservices</keyword>, which is seen as an alternative to <keyword id="6374742" type="COMPANY" weightage="20" keywordseo="Tata-Tele">Tata Tele</keyword> merging with state-owned <keyword id="30351" type="CITY" weightage="20" keywordseo="BSNL">BSNL</keyword>. As per a report by London-based CCS Insight, a global mobile and wireless market information and intelligence provider, the Indian telecom sector will consolidate into a four-operator market in coming three years. The report, 'Halcyon Days Ahead in a Four-Operator Market', was published after a survey with 57 telecom M&amp;A influencers. As per the survey, 68% of the experts nodded to a four-operator market would prevail by 2020. "The only reason for Airtel to consider a deal with the Tatas will be to maintain leadership in revenue market share. The deal between <keyword id="15492" type="CITY" weightage="20" keywordseo="Vodafone">Vodafone</keyword> and Idea threatens to take Airtel's leadership here, and thus Sunil Mittal may counter this through such deals if they come at an attractive price," a top industry analyst told ET, requesting anonymity. As per the report, Tata Tele is likely to be subsumed by Bharti Airtel, 22% said a deal with BSNL was possible and 32% said it could merge with another network operator. "From structuring and approval perspectives, the easiest transaction would be for Tata Teleservices to be subsumed by Bharti Airtel. Our view is that the main alternative is a tie-up with BSNL, but other combinations exist, such as a complex merger with the Reliance Communications-Aircel business," said the report authored by Tony Worthington, a former Standard Chartered and ABN AMRO banker, who has been involved with Indian telecom industry since 1995.

Airtel may acquire Tata Teleservices to maintain leadership in revenue market share

<ul><li><keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword> <keyword id="2003276" type="PERSON" weightage="20" keywordseo="Jio">Jio</keyword> had 262.7 million subscribers in October. </li><li>Both, Vodafone-Idea and <keyword id="6354287" type="UNKNOWN" weightage="20" keywordseo="bharti-airtel">Bharti Airtel</keyword>, saw a decline in consumer base. </li><li>The total number of telephone subscribers in India stands at a grand total of 1170.02 million as of October.</li></ul>The Jio wave isn’t over yet. Reliance Jio and BSNL are the only telecom giants to add wireless subscribers in October, 2018 according to the subscribers’ report <a href="https://www.trai.gov.in/sites/default/files/PRNo01Eng02012019_0.pdf">published</a> by Telecom Regulatory Authority of India (<keyword id="6356988" type="DEFINITION" weightage="20" keywordseo="trai">TRAI</keyword>). The Mukesh Ambani-led Reliance Jio went from 252.2 million subscribers in September to 262.7 million in October, while BSNL saw a hike from its 113 million subscribers to 113.4 million in October. The total telephone subscribers in India stands at a grand total of 1170.02 million as of October, 2018. Trailing off in the race are bigwigs like Vodafone-Idea, Bharti <keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword> and Reliance Infocomm. The Jio Impact With its discounted offers and plans, Jio continues to excite its consumer base, adding more and more numbers to its list. For example, Jio’s recent ‘Happy New Year’ offer announcing a 100 percent cashback for consumers opting for its ₹399 plan. With such plans, the telecom company aims to continue to make its mark in the country. Jio, when it had launched in September 2016, had caused a huge uproar in the <keyword id="10642" type="CITY" weightage="20" keywordseo="Indian-Telecom">Indian telecom</keyword> market promising to overtake its competitors which was also seen in the neverending queues of people looking to take on a Jio number. With free voice calls and data (only charging for data very recently), the company had managed to amass large number of subscribers. With <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s massive growth plans for the company (Reliance Industries Limited (RIL) has invested a staggering <a href="https://www.livemint.com/Companies/ZXkH1gEUb15hQDUzgm9F3I/RIL-AGM-Mukesh-Ambani-wants-to-double-Reliance-Industries.html">$2.5 trillion</a> into Reliance Jio Infocomm Ltd.), the company is headed to overtake its rivals soon. In fact, Reliance Jio Infocomm Ltd. could soon become the country’s no. 1 telecom operator by revenue in 2021 and on a subscriber basis by 2022, as stated in a <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/jio-to-become-indias-no-1-telecom-operator-by-2021-bernstein-report/articleshow/67027316.cms">Sanford C Bernstein &amp; Co</a>. Vodafone-Idea still no breakthrough? The Indian market was set to see an overhaul after two of India’s telecom giants <keyword id="15492" type="CITY" weightage="20" keywordseo="Vodafone">Vodafone</keyword> and <keyword id="41511" type="CITY" weightage="20" keywordseo="idea">Idea</keyword> merging businesses in July 2018. However, although the new entity (Vodafone-Idea) still holds a majority of the market share, it saw a slide in addition of new consumers in October. The TRAI report states that the combined entity lost 6.5 million subscribers between September and October. When the <a href="https://www.bloombergquint.com/business/telecom-department-clears-idea-vodafone-merger-with-riders#gs.ZSCuilCs">merger</a> was approved to create the country’s largest mobile services operator, several government officials had touted the merger to bring in stability into the market to break a possible monopoly by Jio. See also: <a href="https://www.businessinsider.in/after-disrupting-the-telecom-industry-with-jio-mukesh-ambani-makes-a-52-billion-play-for-broadband-and-cable-dominance/articleshow/66270885.cms">After disrupting the telecom industry with Jio, Mukesh Ambani makes a ₹52 billion play for broadband and cable dominance</a> <a href="https://www.businessinsider.in/mukesh-ambanis-reliance-jio-decides-that-it-may-be-too-expensive-to-give-brother-anil-ambanis-rcom-a-lifeline-after-all/articleshow/67174546.cms">Mukesh Ambani’s Reliance Jio decides that it may be too expensive to give brother Anil Ambani’s RCom a lifeline after all</a> <a href="https://www.businessinsider.in/indias-richest-mans-plan-to-revolutionize-its-telecom-industry-with-cheap-data-seems-to-be-working/articleshow/65878495.cms">India's richest man's plan to revolutionize its telecom industry with cheap data seems to be working</a>

Two years on, Reliance Jio continues to dominate Indian telecom market, beating global giants

New Delhi, Nov 19 () Vodafone Idea, India's third-largest telecom service provider, is seeking about Rs 7,000 crore in tax refunds for past years even as it faces fresh statutory dues liability - running into thousands of crore - that has put the income tax department in a bind, sources privy to the development said.
The tax department has in past adjusted refunds against a company's other liabilities towards the government. It had famously adjusted Rs 1,500 crore in tax refunds due to Cairn Energy plc of UK to part settle a retrospective tax demand of Rs 10,247 crore even though the matter was under arbitration.
Sources said Vodafone has to receive an aggregate of about Rs 1,000 crore from Mumbai unit of income tax department and another Rs 6,000 crore from its Delhi office for multiple assessment years dating back to 2004-05.
The company has got favourable rulings from High Courts and appellate tribunals in some and is now pressing the department to quickly refund the dues, they said.
The income tax department is, however, caught in a bind as Vodafone-Idea Ltd has to pay Rs 44,150 crore to the government in past statutory dues following the Supreme Court ruling that non-telecom revenues have to be included for calculating the payout towards license fee and spectrum usage charge.
Sources said the department is of the view that the refund should be adjusted against this demand as there have been some concerns raised in a section of media about the very existence of the company if it were asked to cough up the past statutory liabilities.
The department wants the Finance Ministry in consultation with the Telecom Ministry to decide on dealing with the refund.
Vodafone Idea declined to comment on an email sent to the company on the matter.
Vodafone Idea, last week, reported a consolidated loss of Rs 50,921 crore -- the highest ever loss posted by any Indian corporate -- for September quarter on account of liability arising out of the Supreme Court's order in the adjusted gross revenue (AGR) case.
The Supreme Court ruled in favour of the government and directed telecom companies, including Vodafone Idea, to pay dues as demanded by the Department of Telecom. Vodafone Idea has said that its ability to continue business will depend on reliefs sought from the government and positive outcome of the legal option it has (the company is in the process of filing a review petition on the AGR matter).
Both Vodafone India and Idea Cellular merged their telecom business to handle the tariff war in the sector, triggered by the new entrant Reliance Jio in 2016. The merged entity Vodafone Idea came into existence on August 31 last year as the biggest telecom operator in the country with 408 million mobile customers. 
However, the financial woes for the company did not end and the company lost over 100 million mobile subscribers since merger due to the cut throat tariff war, and chasing higher revenue-yielding minimum recharges.
The company has been investing in building networks. However, low return from tariffs added to its financial worries.
The older telecom operators -- Vodafone Idea and Bharti Airtel -- are staring at massive financial outgo in unpaid statutory dues as Supreme Court has upheld government's way of calculating the telecom revenue, on which licence fee and spectrum charges are computed.
As per latest estimates by the telecom department, Bharti Airtel faces a liability of around Rs 62,187 crore (including share of Tata Group of companies and Telenor India), while Vodafone Idea may have to pay about Rs 54,184 crore. The remaining liability is with state-owned BSNL/MTNL and some of the shut/bankrupt telecom companies.
The Supreme Court has allowed three months to the affected telcos to cough up the amounts due to the DoT, and recently the telecom department shot-off notice to telcos to pay their revenue share dues within the timelines stipulated by the court. The department has given option to operators to clear all the dues on self-assessment basis. MBI ANZ BAL

Vodafone Idea presses for Rs 7,000 cr tax refund; I-T dept hesitant in view of fresh liability

<img class="gwt-Image" src="/photo/58104982.cms" /> The conflict between Indian telecom market leader <keyword id="6354287" type="CITY" weightage="100" keywordseo="Bharti-Airtel">Bharti Airtel</keyword> and new entrant <keyword id="6354504" type="UNKNOWN" weightage="100" keywordseo="Reliance-Jio">Reliance Jio</keyword> Infocomm doesn’t seem to end in the near future. 
 
After mud-slinging each other in the past over several issues, including Jio’s free services and <a href="http://www.businessinsider.in/small-business/tech/airtel-and-jio-lock-horns-over-alleged-misleading-ads/articleshow/57767720.cms">Airtel’s claims </a>of being the fastest network in India, the latter has now accused the former of violating the Telecom Regulatory Authority of India (<keyword id="6356988" type="PERSON" weightage="100" keywordseo="TRAI">TRAI</keyword>) order to stop its Summer Surprise offer. It has also requested the regulatory authority to take "suitable action." 
 
Also read: <a href="http://www.businessinsider.in/reliance-jio-writes-to-asci-against-ooklas-network-speed-test-of-airtel/articleshow/57737170.cms">Reliance Jio writes to ASCI against Ookla's network speed test of Airtel</a> 
 
In turn, Jio has reminded of its April 6 statement, which said that it would <a href="http://www.businessinsider.in/small-business/companies/trai-orders-reliance-jio-to-withdraw-summer-surprise-offer/articleshow/58051579.cms">comply with the order </a>as soon as it is "operationally feasible. 
 
Airtel, on the other hand, is of the view that the offer should have been stopped immediately. "We are surprised that Reliance Jio is openly continuing with its Summer Special offer despite the same being declared ab initio void by the TRAI," a Bharti Airtel spokesperson told ET over email on Sunday. 
 
"In addition, Reliance Jio is running an aggressive campaign via social media and on ground as well as digital flyers encouraging customers and channel partners to subscribe and recharge under the scheme." 
 
"We are sure the honorable regulator will take suitable action against this violation," the mail further said. 
 
Also read: <a href="http://www.businessinsider.in/unlimited-calls-2gb-data-per-day-bsnl-seems-to-follow-jios-steps/articleshow/57685871.cms">Unlimited calls, 2GB data per day; BSNL seems to follow Jio’s steps</a> 
 Jio has stated that it’s not broken any laws. "All the customers who have subscribed to <keyword id="4364832" type="UNKNOWN" weightage="100" keywordseo="Jio-Summer-Surprise">Jio Summer Surprise</keyword> offer prior to its discontinuation will remain eligible for the offer," it added. 
 
Ever since Jio’s commercial launch and two successive free offers that followed, incumbent telcos have been facing a lot of issues, in terms of customer retention. 
 
Also read: <a href="http://www.businessinsider.in/extension-of-reliance-jio-sops-is-another-nightmare-for-rival-telcos/articleshow/57987708.cms">Extension of Reliance Jio sops is another nightmare for rival telcos</a> 
 While some have slashed voice and data rates, <keyword id="41511" type="CITY" weightage="100" keywordseo="idea">Idea</keyword> and <keyword id="15492" type="CITY" weightage="100" keywordseo="Vodafone">Vodafone</keyword> even <a href="http://www.businessinsider.in/small-business/companies/Value-of-Vodafone-Idea-may-be-worth-23-more-than-what-Voda-agreed-at/articleshow/57806787.cms">announced their merger</a>. 
 
Not only this, even the government has seen a fall in the <a href="http://www.businessinsider.in/tech/mobile/promotional-plans-help-retain-customers-but-telecom-companies-lose-revenue-says-dot/articleshow/58060673.cms">amount of possible revenue </a>it collects as license fees. 
 
(Image source LiveMint)

Airtel cries foul, says Jio took too much time to comply with TRAI order

<ul><li>Airtel is picking up pace again when it comes to adding new mobile subscribers, beating Reliance Jio by more than two times in September.</li><li>Airtel added 3.77 million subscribers in September, while Jio was a distant second with 1.46 million additions.</li><li>Vodafone Idea’s subscribers fell below 300 million for the first time since the merger of Vodafone and Idea – it lost 4.65 million users in September.</li><li>While it is catching up in the wireless segment, Airtel has another headache in the wireline segment – Jio.</li><li><a href="https://www.businessinsider.in/stock-market/news/reliance-jio-share-price-is-twice-as-valued-as-bharti-airtel-stock-while-vodafone-idea-vi-ranks-third/articleshow/78269261.cms">Check out the latest news and updates on Business Insider.</a></li></ul>Bharti Airtel is going from strength to strength as it continues to speed up in its bid to catch up with Reliance Jio in the wireless segment. According to the latest data released by the Telecom Regulatory Authority of India (<keyword id="6356988" type="DEFINITION" weightage="20" keywordseo="trai">TRAI</keyword>), Bharti Airtel added a record 3.77 million subscribers in September 2020, beating Reliance Jio by more than two times. The Ambani-led telco added 1.46 million subscribers during the same period. On the other hand, Vodafone Idea continued to haemorrhage users, losing 4.65 million subscribers. <div type="Article" hostid="261" msid="78891875" title="Bharti Airtel loss narrows, revenue beats analyst estimates – ARPU rises to ₹162" mstype="2" mssubtype="0"></div> According to the data published by TRAI, Reliance Jio still has a healthy lead in terms of total subscribers. It now has 404.12 million subscribers, giving it a market share of over 35%. Airtel follows with 326.61 million subscribers, while Vodafone Idea’s subscribers fell below 300 million for the first time since the merger of Vodafone and Idea. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Total subscribers (in million) </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Market share </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Reliance Jio </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">404.12 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">35.19% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Airtel </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">326.61 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">28.44% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Vodafone Idea </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">295.49 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">25.73% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">BSNL </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">118.89 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">10.35% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">MTNL </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">3.33 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">0.29% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">1148.44 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">100.00% </td></tr></tbody></table> Source: TRAI report, September 2020 Reliance Jio fast catching up with Airtel in the wireline segment While Bharti Airtel is returning to winning ways in the wireless segment, it now faces a known threat in the wireline segment – Reliance Jio. According to the TRAI data, Reliance Jio added over 3 lakh new landline subscribers, with the expansion of its Jio Fiber service being the reason behind it. Airtel, on the other hand, added over 66,000 new customers, less than five times that of Reliance Jio. Public sector telcos BSNL and MTNL together lost over 2 lakh subscribers in the same period. Airtel has 4.4 million subscribers, while Jio now has 2.1 million. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-beats-vodafone-idea-but-falls-well-short-of-airtels-revenue-growth-in-the-september-quarter/articleshow/78955325.cms">Reliance Jio beats Vodafone-Idea but falls well short of Airtel’s revenue growth in the September quarter</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-beats-analyst-expectations-reports-record-quarterly-revenue-arpu-rises-to-162/articleshow/78891875.cms">Bharti Airtel loss narrows, revenue beats analyst estimates – ARPU rises to ₹162</a> <a href="https://www.businessinsider.in/stock-market/news/reliance-jio-share-price-is-twice-as-valued-as-bharti-airtel-stock-while-vodafone-idea-vi-ranks-third/articleshow/78269261.cms">Reliance Jio is now twice as valued as Airtel that is down 25% from its peak in May</a>

Airtel records 3.8 million new subscribers in September – more than twice that of Reliance Jio’s additions

New Delhi, Dec 19 () Trade unions urged the government to provide minimum wage of Rs 21,000, minimum pension of Rs 6,000 under Employees' Pension Scheme and tax exemption on annual income of up to Rs 10 lakh in a pre-budget meeting with Finance Minister Nirmala Sitharaman on Thursday.
The unions have also raised concerns over rising unemployment in the country, saying "employment generation has nose-dived in recent period".
During the meeting, they suggested that massive public investment in infrastructure, social sectors and agriculture would generate employment and the Union Budget should give it a priority and allocate necessary funds for this.
They demanded that all vacant sanctioned posts in various government departments, including railways, PSUs and autonomous institutions, should be filled through fresh recruitment.
They also suggested the finance minister that ban on creation of new positions and mandatory reduction of government posts should be lifted.
They noted that denial of level playing field to many PSUs ( BSNL, MTNL, ITI etc) had put thousands of jobs in jeopardy.
The unions also pointed out that the merger of BSNL-MTNL and voluntary retirement (which is actually forced retirement) of almost 79,000 workers is just opposed to the idea of job creation.
Lodging their protest against fixed term employment (FTE), the unions said the provision of FTE should be done away with, and concerned notification should be rescinded forthwith.
They also raised the issue of prise rise saying that the government should ban speculative forward trading in essential commodities and take steps to curtail hoardings along with strengthening public distribution system. 
On disinvestments and strategic sale of public sector units, they said that budgetary support should be provided for the revival of potentially viable sick PSUs.
It also suggested that the finance minister to refrain from strategic sale of viable PSUs in core sectors like steel, coal, mining, heavy engineering, pharmaceuticals, dredging, civil aviation, financial institution, among others.
Under the strategic sale, the government becomes minority stakeholder by reducing its share below 50 per cent of total equity.
The union have asked to extend the rural employment guarantee scheme MGNREGA to urban areas also and enhance minimum employment guarantee to 200 days in a year.
They also lodged protest against foreign direct investment in crucial sectors, saying FDI should not be allowed in railways, defence production, financial sector, retail trade etc.
Trade unions also suggested to stop the labour law amendments that curtail the basic and trade union rights of workers and provide unhindered 'hire &amp; fire' facilities to employers.
They also demanded that the threshold limit for coverage of establishments under the retirement fund body EPFO should be reduced to 10 workers from 20 at present.
Gratuity should be calculated on 30 days wages instead of 15 days of wages per completed year of service without any ceiling, they said.
The government should not make Aadhaar linking mandatory, the unions added.
On the income tax exemption, they urged that the ceiling for income tax for salaried persons and pensioners should be raised to Rs 10 lakh per year.
Besides, they also demanded that income tax ceiling for senior citizens should be raised to Rs 8 lakh.
All perks and fringe benefits like housing, medical and education facilities and running allowances in railways should be exempted from income tax net totally, they said.
"During the course of meeting, representatives of Trade Unions and Labour Organisations shared their views and suggestions regarding labour and employment issues. Discussions were held on skilling, re-skilling and up-skilling of existing labour force. Quality of job creation and ensuring minimum wages of workers were discussed," a finance ministry statement said.
It also stated that during the meeting, representatives of trade unions and labour organisations shared their views and suggestions regarding job creation, labour concerns and quality of employment issues.
They also emphasised quality of job creation and ensuring minimum wages of workers in detail besides the need for streamlining various schemes to have better results, it added.
Along with the finance minister, the meeting was attended by Anurag Singh, Thakur, Minister of State for Finance &amp; Corporate Affairs, Rajeev Kumar and top officials of labour and finance ministries. KKS BAL

You Searched For "idea bsnl merger" and got 12 results

Government owning Vodafone Idea is just half the task – the other half is to find the money

Rounak Jain

India decides to merge MTNL and BSNL and offer voluntary retirement to many of its employees

Sriram Iyer

Vodafone Idea offers salary hike to employees after two years

Prerna Sindwani

What if Vodafone Idea dies?

Rounak Jain

Voda-Idea merger expected to benefit telecom industry, say experts

BI India Bureau

Bharti Airtel buys Telenor before Idea-Voda merger, is this the Jio effect?

Nazia Bijal

Airtel may acquire Tata Teleservices to maintain leadership in revenue market share

BI India Bureau

Two years on, Reliance Jio continues to dominate Indian telecom market, beating global giants

BI India Bureau

Vodafone Idea presses for Rs 7,000 cr tax refund; I-T dept hesitant in view of fresh liability

PTI

Airtel cries foul, says Jio took too much time to comply with TRAI order

BI India Bureau

Airtel records 3.8 million new subscribers in September – more than twice that of Reliance Jio’s additions

Rounak Jain

TUs urges FM to hike income tax ceiling, minimum wages, pension

PTI