Idea Cellular surges 7% after CCI approved merger with Vodafone

STOCK MARKET - Idea Cellular surged 7% to Rs 98.30 on BSE on back of heavy volumes after the Competition Commission of India (CCI) on Monday approved the merger with Vodafone India.

“The company is pleased to confirm receipt of the letter from the Competition Commission of India dated 24th July 2017, according approval to the proposed merger of Vodafone India, Vodafone Mobile Services Limited, and Idea Cellular under sub section (1) of section 31 of the Act,” Idea Cellular said in a BSE filing.

The transaction is expected to close during calendar year 2018 subject to customary approvals, it added.

Post the transaction, Vodafone will own 45.1% stake in the merged entity while the Aditya Birla group, Idea's parent, will have 26% shareholding after paying Rs 3,874 crore cash for a 4.9% stake. The remaining 28.9% will be held by other shareholders.

“This landmark combination will enable the Aditya Birla Group to create a high quality digital infrastructure that will transition the India population towards a digital lifestyle and make the Government’s Digital India vision a reality,” said Aditya Birla Group Chairman, Kumar Mangalam Birla, while announcement of merger.

Till 12:12 pm; a combined 26.87 million shares changed hands on the counter on BSE and NSE.

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All you need to know about Reliance Jio Prime membership that opens today

Latest Business News - The luxury enjoyed by Reliance Jio users is about to end. However, as a smart entrepreneur, Reliance Group chairman Mukesh Ambani has taken attractive measures to keep his loyal 100 million customers content. While Jio users will now be charged for data and other services from April 1, the company is seeking to retain them through special prime memberships at a one-time fee of Rs 99 and Rs 303 a month for unlimited voice, data and content.

Reliance Jio Prime subscriptions open from today and will close on March 31, 2017 for those who have signed up since September 5, 2016, when the services were first offered.

Jio Prime membership

Jio Prime requires one-time membership charge of Rs 99 to be paid before March 31, 2017. It is an extension of the unlimited services offered under the Happy New Year Offer. Users can apply for Jio Prime subscriptions till March 31, 2017. The Jio Prime plans come into effect from April 1, 2017, the day the existing Jio Happy New Year Offer expires

Here is what Jio Prime subscribers will get:

* Customers who sign up for Jio Prime subscription will be able to use unlimited data and voice services for a year at Rs 303 a month under a special offer (effectively just Rs 10/day)

* User can continue enjoying unlimited offering for another 12 months after enrolment.

* All domestic voice calls to any network will always remain free. No roaming charges will be applicable and there won't be black out days either.(Read More)

Bharti Airtel to buy Telenor India unit in response to Jio onslaught

Breaking news - Bharti Airtel, India's largest telecom network operator, is buying Norwegian Telenor's India unit, in yet another consolidation move in India driven by upstart rival Jio's disruptive pricing.

Bharti Airtel said on Thursday it will buy Telenor (India) Communications Pvt Ltd, as part of which it will acquire the Norwegian company's operations in six Indian states. It did not disclose financial terms of the deal.

The entry late last year of Reliance Industries' wireless carrier Jio into India's crowded telecom sector with its free voice and deeply discounted data plans has pushed rivals to slash costs, sharply eroding their profits.


Bharti Airtel reported its lowest profit in four years in the October-December quarter while No. 3 player Idea Cellular posted its first-ever quarterly loss for the same period.

Jio's gameplan is also sparking consolidation moves.

Britain's Vodafone Group said last month it was in talks to merge its Indian subsidiary with Idea Cellular to create India's largest mobile operator with about $12 billion in sales.

And earlier, Reliance Communications had entered into an agreement to merge its wireless business with smaller rival Aircel.(Read More)

Here is what Airtel, Idea and Vodafone are offering to counter Reliance Jio

Breaking news - Reliance Jio made a big announcement on Tuesday following which the road ahead doesn't look smooth for rivals Airtel, Idea Cellular, Vodafone, among others. Although the free services provided since its launch, including 1GB data at 4G speeds every day, unlimited voice calls and unlimited text messages will be over after 31 March, the operator has introduced a new plan called Jio Prime which will allow users to avail the facilities for another year at a nominal price. 

Here are the key points:

• Membership: Jio Prime membership is limited to the 100 million existing Reliance Jio users as well as those who join the network before March 31, 2017. 
• Cost: All Jio members can enroll prime membership for a one time fee of Rs 99 (which is valid for one year). Additionally, to get the free mobile data and other benefits, users will need to pay another Rs. 303 per month for the next 12 months (which amounts to Rs 10 per day, approximately). 
• Subscription: To subscribe, users can go to any Jio store or Jio partner store. Besides, MyJio app and Jio.com website can also be used. 
• Commencement: Users can start subscribing to the plan from March 1. It will end on March 31.
• Offers: Under the plan, unlimited mobile data for a year (1GB daily FUP limit), media and content benefits associated with the Jio apps suite are available. "There will be many other attractive deals and offers from both Jio and its partners (for) the Jio Prime members," a statement released by the company said. Like the current offer, Jio Prime will also reduce the internet speed to 128kbps after the 1GB data per day limit is crossed.
• Users who do not subscribe: Reliance Jio users who opt not to subscribe the Jio Prime membership will have to pay for data and other services, but not voice calls (including on roaming). 

A quick look at the offers provided by Vodafone, Airtel and Idea

Price war: Vodafone packs up to four times more data for 4G users

Breaking news - The data tariff war shows no signs of let up, with telecom service provider Vodafone on Tuesday announcing up to four times more data for 4G customers buying 1 GB and 10 GB packs.

Customers buying a 1 GB and 10 GB 4G data packs can now enjoy 4 GB and 22 GB data, for Rs 250 and Rs 999, respectively, Vodafone said in a statement.

These packs are available across all circles in which Vodafone offers 4G services, it added.

"Our customers are consuming more of content and video online. It will also encourage first time and limited users of mobile internet to explore more by providing greater value. They can access four times more of their favourite content online for the same cost in a truly worry free manner," Sandeep Kataria, Chief Commercial Officer, Vodafone India said.

The higher quantum of data can be used by customers for videos and movie downloads on Vodafone Play, with 150-plus Live TV channels, over 14,000 movies, TV show titles and various genres of music. These 4X data packs can be purchased via digital channels as well as all retail touch points, it added.

Earlier this month, telecom operator Bharti Airtel upped the ante in the price war upgrading its existing unlimited calling schemes by adding 3 GB free 4G data, worth up to Rs 9,000, for non-users of its 4G services.(Read More)

Jio, Tata oppose Airtel, Vodafone plea on Trai's IUC rules in Delhi HC

Latest Business News - Reliance Jio and Tata Tele Services Ltd (TTSL) Wednesday opposed in the Delhi High Court the pleas filed by telecom firms Bharti Airtel and Vodafone challenging Trai's interconnect usage charges regulations fixing termination charges for the landline to wireless as zero paise and wireless to wireless at 14 paise per minute.

Interconnection usage charges (IUC) or termination charges are payable by one telco, whose subscriber makes a call, to another whose subscriber receives the call. The charge is payable by the first for using the second's network.

The counsel appearing for Reliance Jio and TTSL told a bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal that they are opposing the petitions filed by Airtel and Vodafone.

To this, the bench said, "We felt that all the service providers are on the same footing."

However, senior advocate P Chidambaram, who was appearing for one of the petitioners, told the bench that service providers who have less customers are not at "disadvantage" but operators having a large customer base are "suffering" due to the regulation.(Read More)

Google looks to turn on its revenue tap from Android in India

Breaking News - Airtel and Vodafone subscribers in India have begun seeing an option to pay for apps, games, books and movies on Google's Play Store through their carriers, allowing them to buy services on their Android devices without a credit/debit card or net banking.

Combined, the country's two largest mobile service providers have over 450 million subscribers, giving Google a massive base of customers who will now be able to buy services on its Play Store more easily. The company's Android operating system powers 9 out of 10 smartphones in the country.

Google has not officially announced the launch of carrier billing for Airtel and Vodafone users in the country, but both prepaid and postpaid users have begun seeing the option. Upon initiating a payment however, users are shown an error message suggesting the integration isn't yet complete.

"We are continually looking at ways to enhance user experience, including payment options available on our Play store," a Google spokesperson said when contacted about the development.(Read More)