Vodafone Idea Ltd: Consolidated network
(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.