Voda­fone Idea Ltd: Con­sol­i­dated net­work

Money Times - - Stock Buzz/Expert Eye -

(BSE Code: 532822) (CMP: Rs.35.90) (FV: Rs.10)

Voda­fone Idea Ltd (for­merly Idea Cel­lu­lar), an Aditya Birla and UK-based Voda­fone Ltd com­pany, is In­dia’s third largest wire­less op­er­a­tor with a rev­enue mar­ket share of more than 25% post con­sol­i­da­tion. It is a lead­ing GSM mo­bile ser­vices op­er­a­tor with over 72 mil­lion sub­scribers un­der the brand ‘Idea’. It op­er­ates in all the 22 tele­com cir­cles of which 15 are clas­si­fied as es­tab­lished ser­vice ar­eas and 7 as new ser­vice ar­eas. It is a pan In­dia in­te­grated GSM op­er­a­tor cov­er­ing the en­tire tele­phony land­scape of the coun­try with NLD (Na­tional Long Dis­tance) and ILD (In­ter­na­tional Long Dis­tance) op­er­a­tions. It of­fers af­ford­able and world-class mo­bile ser­vices be­sides ba­sic voice and SMS ser­vices to high-end value added and gen­eral packet ra­dio ser­vice (GPRS) ser­vices such as Black­berry, Dat­ac­ard, Mo­bile TV and Games. In 2015, Mi­crosoft had tied up with Idea Cel­lu­lar to launch op­er­a­tor billing on the Win­dows Store for the lat­ter’s sub­scribers. Idea Cel­lu­lar has suc­cess­fully re­tained the cru­cial 900 MHz spec­trum and won 54 MHz of the 900 MHz spec­trum. Video­con Telecom­mu­ni­ca­tions had sold its spec­trum in Gu­jarat and Ut­tar Pradesh (West) cir­cles to Idea Cel­lu­lar at a val­u­a­tion of Rs.3310 crore in the same year.

Idea had launched high-speed 4G and 4G LTE ser­vices in all the four tele­com ser­vice ar­eas of South In­dia. The big-bang en­try of Re­liance Jio and un­cer­e­mo­ni­ous death of re­gional op­er­a­tor – Air­cel and na­tional player – Re­liance Com­mu­ni­ca­tions forced the tele­com in­dus­try for con­sol­i­da­tion en­abling Voda­fone and Idea to join hands for merger. Pric­ing power will emerge soon where ex­ist­ing play­ers with good net­work will con­tinue to make money. The stock has cor­rected sig­nif­i­cantly in line with the mar­ket crash, which of­fers an ex­cel­lent en­try point from a longterm per­spec­tive. The pro­mot­ers hold more than 70% stake in the com­pany. The stock is ready to take a leap on any pos­i­tive news about the com­pany or the sec­tor. Buy now and hold for two years to make up to 100% re­turns.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.