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Vodafone Idea, India’s Largest Telecom Operator, Plans To Invest Rs 27,000 Crore in Next Financial Year
(YouTube/Vodafone Idea)
Vodafone Idea is planning to invest Rs. 27,000 crores in India in the next financial year (FY20), as reported by Livemint.
The company was created by the merger of Vodafone India and Idea Cellular, the telecom arm of the Aditya Birla Group. It occupies a market share of 32.2 per cent. The target date for complete integration of the two businesses has also been advanced from 2023 to 2021.
“Capex guidance of Rs 270 billion in the financial year 2019-20 supported by existing co-located equipment to be redeployed, spectrum consolidation, capex avoidance and efficiencies,” a statement by the company said.
Though the complete integration of the businesses of both the companies has been postponed, the merger will bring about savings of Rs 14,000 crore due to economies of scale and synergies in operations.
The entry of Mukesh Ambani-controlled Reliance Jio in September 2016 led to a price war between the new entrant and the existing players and forced consolidation in the industry. Vodafone India posted a loss of Rs 4,974 crore for the September quarter and missed a Rs 900-crore spectrum linked payment to the government. While Airtel’s profits fell by 65.4 per cent, Reliance Jio posted a net income of Rs 681 crore.
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