Idea Cellular was an
Indian telecommunications company
A telecommunications company is a kind of electronic communications service provider, more precisely a telecommunications service provider (TSP), that provides telecommunications services such as telephony and data communications access. Many t ...
based at
Mumbai
Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...
,
Maharashtra
Maharashtra () is a state in the western peninsular region of India occupying a substantial portion of the Deccan Plateau. It is bordered by the Arabian Sea to the west, the Indian states of Karnataka and Goa to the south, Telangana to th ...
. It was an integrated
GSM
The Global System for Mobile Communications (GSM) is a family of standards to describe the protocols for second-generation (2G) digital cellular networks, as used by mobile devices such as mobile phones and Mobile broadband modem, mobile broadba ...
operator and had 220.00 million subscribers as of June 2018.
In 2018 Idea Cellular
merged
Mergers and acquisitions (M&A) are business transactions in which the ownership of a company, business organization, or one of their operating units is transferred to or consolidated with another entity. They may happen through direct absorpt ...
with
Vodafone India
Vodafone India was the India, Indian Subsidiary company, subsidiary of United Kingdom, UK-based Vodafone Group and was a Internet Service Provider, provider of Telecommunications service, telecommunications services in India with its operationa ...
into
Vodafone Idea.
History
Idea Cellular was
incorporated as Birla Communications in 1995 after
GSM
The Global System for Mobile Communications (GSM) is a family of standards to describe the protocols for second-generation (2G) digital cellular networks, as used by mobile devices such as mobile phones and Mobile broadband modem, mobile broadba ...
licenses were won in
Gujarat
Gujarat () is a States of India, state along the Western India, western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the List of states and union territories ...
and
Maharashtra
Maharashtra () is a state in the western peninsular region of India occupying a substantial portion of the Deccan Plateau. It is bordered by the Arabian Sea to the west, the Indian states of Karnataka and Goa to the south, Telangana to th ...
circles. The
company name was changed to Idea Cellular and the
brand
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's goods or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and ...
Idea was introduced in 2002 after a series of name changes following
mergers
Mergers and acquisitions (M&A) are business transactions in which the ownership of a company, business organization, or one of their operating units is transferred to or consolidated with another entity. They may happen through direct absorpt ...
and
joint ventures
A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...
with
Grasim Industries,
AT&T Corporation
AT&T Corporation, an abbreviation for its former name, the American Telephone and Telegraph Company, was an American telecommunications company that provided voice, video, data, and Internet telecommunications and professional services to busi ...
and
Tata Group
The Tata Group () is an Indian multinational conglomerate group of companies headquartered in Mumbai. Established in 1868, it is India's largest business conglomerate, with products and services in over 160 countries, and operations in 100 c ...
. Following the exit of AT&T Corporation and Tata Group from the joint venture in 2004 and 2006 respectively, Idea Cellular became a
subsidiary
A subsidiary, subsidiary company, or daughter company is a company (law), company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidia ...
of
Aditya Birla Group.
Malaysia
Malaysia is a country in Southeast Asia. Featuring the Tanjung Piai, southernmost point of continental Eurasia, it is a federation, federal constitutional monarchy consisting of States and federal territories of Malaysia, 13 states and thre ...
based
Axiata had bought around 20%
stake in the
company
A company, abbreviated as co., is a Legal personality, legal entity representing an association of legal people, whether Natural person, natural, Juridical person, juridical or a mixture of both, with a specific objective. Company members ...
in 2008 for US$2 billion.
Idea previously bought a 40.8% stake in
Spice Telecom, for over 2,700 crore.
Merger with Vodafone India
The entry of
Jio in 2016 had led to various
mergers and consolidations in the Indian
telecom sector. It was announced in March 2017 that even Idea Cellular and
Vodafone India
Vodafone India was the India, Indian Subsidiary company, subsidiary of United Kingdom, UK-based Vodafone Group and was a Internet Service Provider, provider of Telecommunications service, telecommunications services in India with its operationa ...
would be merged. The merger got approval from
Department of Telecommunications in July 2018. On August 30, 2018,
National Company Law Tribunal gave the final nod to the Vodafone-Idea merger
The merger was completed on 31 August 2018, and the newly merged entity was named
Vodafone Idea.
The merger created the largest
telecom company in India by subscribers and by revenue. Under the terms of the deal, the
Vodafone Group holds a 45.2% stake in the combined entity, the Aditya Birla Group holds 26% and the remaining
shares
In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation. It can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Sha ...
will be held by the public.
On 7 September 2020, Vodafone Idea unveiled this new
brand identity, Vi, which involved the integration of the company's erstwhile separate brands Vodafone India and Idea Cellular into one unified brand.
Operations
In the 2010
3G spectrum auction, Idea paid for spectrum in 11 circles. After the launch of
MNP in India, Idea further strengthened its customer base because it was the
mobile network with most net port-ins.
Radio frequency summary
Idea Cellular owned spectrum in 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands across the country.
Note: The above table contains
Vodafone Idea radio frequency details because they used to share their networks with each other via ICR (intra-circle roaming agreement) in some circles. For example, Idea had started giving its customers in Delhi access to
4G services in May 2018 via the
Vodafone
Vodafone Group Public Limited Company () is a British Multinational company, multinational telecommunications company. Its registered office and global headquarters are in Newbury, Berkshire, England. It predominantly operates Service (economic ...
network.
See also
*
Aditya Birla Group
*
AT&T Corporation
AT&T Corporation, an abbreviation for its former name, the American Telephone and Telegraph Company, was an American telecommunications company that provided voice, video, data, and Internet telecommunications and professional services to busi ...
*
Axiata
*
Grasim Industries
*
Spice Telecom
*
Tata Group
The Tata Group () is an Indian multinational conglomerate group of companies headquartered in Mumbai. Established in 1868, it is India's largest business conglomerate, with products and services in over 160 countries, and operations in 100 c ...
*
Vodafone Idea
*
Vodafone India
Vodafone India was the India, Indian Subsidiary company, subsidiary of United Kingdom, UK-based Vodafone Group and was a Internet Service Provider, provider of Telecommunications service, telecommunications services in India with its operationa ...
References
Further reading
Liquidity and Profitability Tradeoff (a study of Idea Cellular Limited)
External links
*
{{Major telecommunications companies
Companies based in Mumbai
Telecommunications companies of India
Axiata
Aditya Birla Group
Mobile phone companies of India
Private equity portfolio companies
Providence Equity Partners companies
Internet service providers of India
Indian companies established in 1995
Indian brands
Former AT&T subsidiaries
Former Tata Group subsidiaries
1995 establishments in Maharashtra
Telecommunications companies established in 1995
Companies formerly listed on the National Stock Exchange of India
Companies formerly listed on the Bombay Stock Exchange