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Reports in the Indian press suggest that India’s Department of Telecoms has given its final approval for the proposed merger between two of India’s biggest telcos
India’s Department of Telecoms (DoT) has given its final approval for the proposed merger between Vodafone India and Idea Cellular, after the pair made payment of outstanding charges relating to spectrum licencing, according to reports in the Indian press.
"Bank guarantees for deferred spectrum payments that Vodafone owes to the DoT will be amended by the banks concerned, and will be transferred to Idea Cellular, since that will be the entity that will hold the licenses," an official in the DoT told reporters from the Economic Times of India.
"The approval letter however includes the conditions that the merged entity will have to comply with the outcomes of pending cases in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), and other courts," he added.
The merger will create India’s third biggest telco and will provide much needed synergies for the newly formed company, in what is one of the world’s most competitive market places.
