Thursday, 27 July 2017

A potted history of Vodafone's Indian adventures

By Nick Wood, Total Telecom
Friday 03 February 17

U.K. telco's bright Idea to bulk up in India may lead to the asset's deconsolidation from the balance sheet.

This week started off with a bang when Vodafone confirmed what many already suspected: it is looking to consolidate the Indian mobile market in a bid to ease the pressure wrought by disruptive newcomer Reliance Jio Infocomm, which has been offering free voice and data since September 2016, and will continue to do so until at least the end of March. In a brief statement on Monday, Vodafone said it has entered talks with Aditya Birla Group, the Mumbai-based conglomerate that owns Vodafone India rival Idea Cellular, about an all-share deal between the two mobile operators. The deal is not done yet, but if it goes ahead, it would see Vodafone India deconsolidated from Vodafone's balance sheet, which means the telco's as-yet undefined stake in the merged entity would be accounted for as an investment…

This week started off with a bang when Vodafone confirmed what many already suspected: it is looking to consolidate the Indian mobile market in a bid to ease the pressure wrought by disruptive newcomer Reliance Jio Infocomm, which has been offering free voice and data since September 2016, and will continue to do so until at least the end of March. In a brief statement on Monday, Vodafone said it has entered talks with Aditya Birla Group, the Mumbai-based conglomerate that owns Vodafone India rival Idea Cellular, about an all-share deal between the two mobile operators. The deal is not done yet, but if it goes ahead, it would see Vodafone India deconsolidated from Vodafone's balance sheet, which means the telco's as-yet undefined stake in the merged entity would be accounted for as an investment…

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