Abstract-The Indian telecom is the fastest growing industry in theworld . It is one of major GDP and economic development factor in the world. The Indian telecom in current scenario is the mostunstable industry as compared to other industry due to entry of reliance jiobut the growth in the sector is certainty. Due to this scenario the Indian telcomindustry has started consolidate in which the teleco are mergering toshare their network assets . The following report will guide you to the Idea –Vodafone merger and how this merger and there technology Road map will helpthem to stabilize. IntroductionIndian telecom sector is the fastest growing sector in the current Indianeconomy Scenario but at the same time it is a highly unstable sector due tocurrent competition.
It has connections over 11.1 billon which makes it secondlargest in global scenario with a continuous growing CAGR of 19.6% drivenby an exponential surge in data consumption in the recent few years.
Indiaranks among top five countries across the world in highest internet users andis speculated to rank as the fourth largest market by the year 2020 with twoout of every three mobile phones to be smart phones. Collaborative efforts bynumerous players in the market, Telecom Services Providers (TSPs),infrastructure companies, regulatory bodies and the government have nurturedthe Indian telecom market and the same is expected to cross the INR 6.6trillion2 revenue mark by the year 2020. But still advances are needed in thesector due to current scenarios ,despite the growth numbers and an upward trajectory, significant enhancementshave to be made in the IT and telecommunications ecosystems for greaterefficiencies and sustained growth. Thus, the Indian market provides telecomservice providers with a large untapped potential, given the country’sincreasing population and its low tele-density. The Government has plans toraise tele-density to 80-85 per cent by 2020, thereby offering greater growthopportunities for service providers. No doubt, there has been a revolutionaryshift in telecom growth in India in the last decade, several lacunae persistand need sustained policy attention to achieve a just distribution of telecommunicationsresources.
Vodafone India is the Indian subsidiary of UK-based Vodafone Group plc, the world’s second-largest mobile phone company, and is aprovider of telecommunications services PAN india. Vodafone India has amarket share of 18.42% with approximately 200 million subscribers and is the second largest mobiletelecommunications network.Idea Cellular is an Indian mobile network operator based at Mumbai, Maharashtra. Idea is a pan-India integrated GSM operator offering 2G, 3Gand 4G mobile service. Idea has 193.96 million subscribers as of 31 July2017 making it the third largest teleco.
Currently tocope-up current scenario both teleco has agreed upon a merger to become thelargest teleco in the telecom sector by using their common network assetsefficiently.Demand of indian market In 2017 datausage in India surpassed USA and China it’s thanks to introduction of free data offers from Reliance Jio. Thus, additional investment innetwork to boost coverageof web footprint are done by telecommunication industry. In next 2 years improvement of coverage can demand investment ofaround three hundred thousand crore.IOT , AI beside robots and drone are the long term technologiesadopted by the country .These technologies demand for prime speed and so, 5G alongwith fibernetwork square measure the longer term goals forthe telecommunication trade.
Indian customers specially living in high cities can watch prime quality TV content and livestreaming and it demand telcos toinvest in network to support video. Report says of these investments created by telecommunication corporations can increase their revenues however result in nearly twentyfifth decline in ARPU.Indian telecommunication trade demandstelcos to take a position inindoor coverage and spectrum whichcan result in magnified quality of service(QOS). powerful indian telecommunication corporations square measure celebrating eminent speed test , howeverclient can stillface video and voice quality issues fornext 2 to 3 years.Strengthof Vodafone-Idea. The combined subscriber count for Vodafone-idea are around thirty-nine crore followed by Airtel’s twenty-seven crore. The united entity can have revenue market sharearound40% followed byAirtel’s thirty-twopercent.
Vodafone-Idea can along havethe strongest retail footprint likewise as sturdy spectrum holdings. Mergerof Vodafone-Idea can build them biggest spectrumholder in Asian nation knock out Reliance-Jio.The entitywould have thirty-five percent network capability share.Merged entity can result in higher service quality and client expertise.
it’ll havereduced money challenges, which can encourage the corporate to pay a lot of on QOS Affordability & Cost Entry ofReliance Jio has launched anenormous price battle.With its free services, Jio has upset the larger players. The Vodafone-Idea unified entity can solely add fuel to the hearth. Since the unified entity can have a lot of resources, the medium price battlegoes tourge messier. Idea-Vodafone merger could cause a lot of consolidation. RelianceCommunications, Tata Teleservices and Aircel square measure already in talks for merger. Airtel hasbought India operationsof Telenor.
Reliance isunquestionably attending to facestiff fight from the new biggies. thebuyer are theking. Though the consolidated entities wouldfight the value warfor a year or 2, costs square measure attendingto increase within the long run. With fewer firms within the sector, there’s a better probability of accord on costs.
Moreover, because the new biggies provide higherclient expertise,it cannot return atlow costs.Data & Voice support· Vodafone India has 17 circles with 4G capability .Idea’swireless broadband network is spread across 17 circles with a population ofover 880 million, with 50 per cent of this population already covered.
Bycombining their respective businesses, Idea and Vodafone will establish acompany with the scale and efficiency required to offer innovative andattractively priced mobile services, enhancing it Data & Voice Services .Thecombination of the two companies’ networks and spectrum holdings, together withcontinued investment, will accelerate the pan-India expansion of its Data driven Services..
The combined company will have sufficient spectrum tocompete effectively with the other major operators in the market. It would hold1,850 MHz, including circa 1,645 MHz of liberalised spectrum acquired throughauctions7. Itwill be capable of building substantial mobile data capacity, utilising thelargest broadband spectrum portfolio with 34 3G carriers and 129 4G carriersacross the country ,which will lead to efficient and a well covered PAN Indianetwork. Future evolutionIdea is building the base for 5G.
They clearly expect this is often planning to taketime. in the meantime,a solid 4G network goes tobe the crucial retreat for future 5G. plan expect 5G to be launchedworldwide within the developedmarket by 2020. By 2022, India ought to be prepared for 5G.When it had been 2G and 3G, India was a minimum of a decade behinddeveloped markets. once it had been 4G, they were a minimum of 4-5 years behind thedeveloped market.
In 5G, we expectto lag by just two years of launch .Idea Cellular is committed to investment in technologieslike huge MIMO, Cloud,and AI, and the way client expertise will improveon virtual reality and augmented reality.Though the 5G technology continues to be some years away Vodafone companyis transferral a number of the 5Gtechnologies like hugeMIMO into 4G and applyingthem.
They are conducting trials of this technology. It is very futuristic in5G, but are using it in 4G. There will be many other things that company willbe bringing into their networks.Latency has been the amount onepriority for VodafoneIndia, that claims to possess the most effective latencyin India among allnetworks.
Thus, each the businesses are able to select 5Gin close future, each have capability to adopt 5Gtechnology on an individual basis. once merging the entity will apace acquire the up comingtechnologies with hyperbolic capability of the entity