A

Sumer Internship Project Report

On

“AN ANALYTICAL STUDY ON

MERGER OF VODAFONE & IDEA’’
For

Submitted By

Mr. Pruthviraj Sanjay Sanap

MBA Business Analytics Sem 3
Submitted To

SAVITRIBAI PHULE PUNE UNIVERSITY

In Partial Fulfilment of

Master of Business Administration

Through

UNDER THE GUIDANCE OF

Dr. Amruta Khedkar

PROGRESSIVE EDUCATION SOCIETY’S

MODERN INSTITUTE OF BUSINESS STUDIES (MIBS)
FORMARLY INSTITUTE OF MANAGEMENT & CAREER DEVELOPMENT,
NIGDI PUNE- 41104

1
 Progressive Education Society’s
Modern Institute of Business Studies
Nigdi, Pune-44

CERTIFICATE

This is to certify that Mr. Pruthviraj Sanjay Sanap of Master of Business Administration
have successfully completed the Summer Internship Project entitled “AN ANALYTICAL
STUDY ON MERGER OF VODAFONE & IDEA’ for Vodafone Idea Limited during
academic year 2023-24

This report is submitted as partial fulfillment of the requirement of degree in MBA (Business
Analytics) as per rules of Savitribai Phule Pune University, Pune.

Director Internal Guide External Examiner

Dr. Maithili Arjunwadkar Dr. Amruta Khedkar

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 ACKNOWLEDGEMENT

I wish to express my sincere gratitude to Mr. Deepak Bade, for providing me an opportunity
to do my internship and project work in “Vodafone Idea Limited”

I sincerely thanks to Bhagyashree Patil, Manager for their guidance and encouragement in
carrying out this project work. I also wish to express my gratitude to the officials and other
staff members of Vodafone Idea who rendered their help during the period of my project
work.

I also thankful to Dr. Maithili Arjunwadkar Director of progressive education society’s

institute of management and career development.
I express my gratitude to Dr. Amruta Khedkar, SIP Guide for providing me an opportunity
to undertake my internship program with under his value guidance and continuous
monitoring.

Pruthviraj S. Sanap
MBA
Business Analytics

3
 DECLARATION

I hereby declare that the project report on “AN ANALYTICAL STUDY ON MERGER OF
VODAFONE & IDEA’’ is written and submitted by me to Progressive education society’s
Modern Institute of Business Studies [MIBS] Nigdi Pune, towards the partial fulfillment for
the study of S.Y MBA in year 2023 is original work done by me Pruthviraj Sanjay Sanap
which is based on the primary and secondary data and it’s based on the Knowledge and
material gained from the company.

The contents provided are true to the best of knowledge and belief.

I further declare that this project report has not been submitted to any other college or
university for any other degree or course earlier.

Place: Nigdi, Pune.

Date:

Name of the Student: Pruthviraj S Sanap

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Certificate of Organization

5
 INDEX

Sr. No. Chapter Name Page No.

1 Executive Summary

2 Objectives

3 Introduction

4 Company Profile

5 Literature Review

6 Scope of Study

7 Research Methodology

8 Limitations

9 Data Analysis and Interpretation

10 Finding /Observations

11 Suggestions

12 Conclusion

13 References

14 Annexure

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Executive Summary

7
 Executive Summary

Vodafone and Idea have announced that they are to merge their Indian operations. This deal
will create the largest mobile operator in India with a market share of over 35%. It will also
create one of the largest mobile operators in the world.
The merger has been met with mixed reactions. Some analysts have welcomed the move,
arguing that it will create a more efficient and competitive market. Others have expressed
concerns that the merger will lead to higher prices and reduced choice for consumers.
The Indian government has also expressed some concerns about the merger. The government
is worried about the impact on competition and the potential for job losses. However, the
government has also said that it will not block the merger.
The merger is expected to be completed in early 2018. In the meantime, the two companies
will continue to operate independently.
The merger of Vodafone and Idea is a significant event for the Indian telecommunications
market. It will create a new market leader and will have a major impact on the competitive
landscape. The merger is also likely to have a significant impact on consumers. It is
important that the government and the companies involved work together to ensure that the
merger is in the best interests of consumers.
Potential benefits of the merger include:
 Increased efficiency and productivity
 Reduced costs
 Improved customer service
 Increased investment in new technologies and infrastructure
 Increased market share and competitiveness
Potential drawbacks of the merger include:
 Reduced competition
 Higher prices
 Reduced choice for consumers
 Job losses
 Reduced innovation
The government should carefully consider the potential benefits and drawbacks of the merger
before making a decision on whether to approve it. The companies involved in the merger
should also work to ensure that the merger is in the best interests of consumers.

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Introduction

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 Introduction

Vodafone: Vodafone is a British multinational telecommunications company. It

predominantly operates services in Asia, Africa, Europe, and Oceania. As of January
2023, Vodafone owns and operates networks in 21 countries, with partner networks in
48 further countries. Its Vodafone Global Enterprise division provides
telecommunications and IT services to corporate clients in 150 countries.

Vodafone is one of the world's largest telecommunications companies, with over 300
million mobile customers and over 270 million fixed broadband customers. It is also a
leading provider of mobile internet services, with over 230 million customers.

Vodafone offers a wide range of telecommunications services, including mobile voice

and data services, fixed broadband services, TV services, and enterprise solutions. It
is also a major investor in new technologies, such as 5G, cloud computing, and the
Internet of Things (IoT).

Vodafone is committed to connecting people and businesses to the world around

them. It is also committed to using technology to make a positive impact on society.
For example, Vodafone is working to reduce its environmental impact and to promote
digital inclusion.

Here is a brief overview of Vodafone's history:

 1983: Vodafone is founded as a subsidiary of Racal Electronics.

 1985: Vodafone launches the UK's first cellular telephone network.
 1990s: Vodafone expands into Europe and other parts of the world.
 2000: Vodafone acquires Mannesmann AG, a German industrial
conglomerate.
 2005: Vodafone acquires a 10% stake in India's Bharti Enterprises.
 2007: Vodafone acquires a controlling interest in Hutch Essar, an Indian
mobile phone operator.
 2015: Vodafone merges its Indian operations with Idea Cellular to form
Vodafone Idea Limited.
 2023: Vodafone is one of the world's largest telecommunications companies,
with over 300 million mobile customers and over 270 million fixed broadband
customers.

Vodafone is a global leader in telecommunications, and it is committed to connecting

people and businesses to the world around them. It is also committed to using
technology to make a positive impact on society.

Idea:

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Idea Cellular (commonly referred to as Idea (stylized as Idea) was an Indian mobile network
operator based at Mumbai, Maharashtra. Idea was a pan-India integrated GSM operator and
had 220.00 million subscribers as of June 2018. Idea Cellular merged with Vodafone and is
now known as Vodafone Idea or Vi.

Idea Cellular was incorporated as Birla Communications Limited in 1995 after GSM licenses
were won in Gujarat and Maharashtra circles. The company name was changed to Idea
Cellular and the brand Idea was introduced in 2002 after a series of name changes following
mergers and joint ventures with Grasim Industries, AT&T Corporation and Tata Group.
Following the exit of AT&T Corporation and Tata Group from the joint venture in 2004 and
2006 respectively, Idea Cellular became a subsidiary of Aditya Birla Group. Malaysia based
Axiata had bought around 20% stake in the company in 2008 for US$2 billion.

Idea Cellular was one of the leading mobile network operators in India, offering a wide range
of services, including voice, data, and mobile value-added services. It was also a pioneer in
the launch of new technologies, such as 3G and 4G services.

Idea Cellular was known for its innovative marketing campaigns and its strong customer
focus. It was also one of the most socially responsible companies in India, with a strong
commitment to sustainability and community development.

In August 2018, Idea Cellular merged with Vodafone India to form Vodafone Idea Limited.
Vodafone Idea is now the largest telecom service provider in India, with over 500 million
customers.

Here are some of the key achievements of Idea Cellular:

 Idea Cellular was the first mobile operator in India to launch 3G services in 2008.
 Idea Cellular was the first mobile operator in India to launch 4G services in 2012.
 Idea Cellular was the first mobile operator in India to launch Voice over LTE
(VoLTE) services in 2014.
 Idea Cellular was the first mobile operator in India to launch Voice over Wi-Fi
(VoWiFi) services in 2015.
 Idea Cellular was the first mobile operator in India to launch 5G services in 2020.

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The merger of Vodafone and Idea in 2018 was the largest corporate consolidation in Indian
history, creating the country's largest telecom operator with over 400 million subscribers. The
merger aimed to achieve several objectives, including:

Synergies: The merger was expected to generate significant synergies in terms of network
costs, operational efficiency, and spectrum utilization.

Market leadership: The combined entity would become the clear market leader in the Indian
telecom sector, with a significant advantage over its rivals.

Investment: The merger would provide the combined entity with the resources to invest
heavily in its network and services, in order to meet the growing demands of Indian
consumers.

The merger was not without its challenges, however. The combined entity faced stiff
competition from other telecom operators, such as Reliance Jio and Airtel. Additionally, the
merger was subject to regulatory scrutiny, and the Competition Commission of India (CCI)
imposed several conditions on the merger, including the requirement to divest some
spectrum.

Despite the challenges, the merger of Vodafone and Idea has been a success. The combined
entity has been able to achieve significant synergies, and it has maintained its market
leadership position. The merger has also enabled the combined entity to invest heavily in its
network and services, which has benefited Indian consumers.

This study will analyze the merger of Vodafone and Idea in detail. It will examine the
objectives of the merger, the challenges faced, and the impact of the merger on the Indian
telecom sector. The study will also draw conclusions on the lessons that can be learned from
the merger.

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Company Profile

13
 Company Profile

Vi (formerly Vodafone Idea Limited) is an Indian mobile network operator with its
headquarters based in Mumbai and Gandhinagar. It is an all-India integrated GSM operator
offering 2G, 3G, 4G, LTE Advanced, VoLTE, 5G and VoWiFi service. As of 30 June 2023,
Vi has a subscriber base of 221.4 million, making it third largest mobile telecommunications
network in India and 11th largest mobile telecommunications network in the world.
'Vodafone Idea Limited' was created on 31 August 2018 by the merger of Vodafone India and
Idea Cellular. In 2020, the two separate brands Vodafone and Idea rebranded as Vi.

Products and Services

Vi offers a wide range of products and services to its customers, including:

 Mobile voice and data services

 Broadband services
 Passive infrastructure services
 Entertainment services
 Enterprise services
 Digital services
 Content services
 IoT solutions

Vision and Mission

Vi's vision is to be "the most trusted and valued partner helping businesses succeed in a
digital world." Its mission is to "provide innovative and delightful customer experiences."

Values

Vi's values are: Speed Bold Passion Digital Trust

Achievements

Vi has a number of achievements to its name, including:

 India's largest telecom service provider

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 Third largest mobile telecommunications network in India
 11th largest mobile telecommunications network in the world
 Largest spectrum portfolio in India
 Fastest growing 4G network in India
 First telecom operator in India to launch VoLTE service
 First telecom operator in India to launch 5G service

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Literature Review

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 Literature Review

The analytical study on the merger of Vodafone and Idea is a complex and multifaceted topic,
with a wide range of literature available on the subject. The following is a brief review of
some of the key findings from the literature:
Impact on the industry
The merger of Vodafone and Idea has had a significant impact on the Indian
telecommunications industry. The combined entity is now the largest telecommunications
operator in India, with a market share of over 35%. This has led to increased competition in
the industry, which is likely to benefit consumers in the long run. However, there are also
concerns that the merger could lead to higher prices and reduced innovation.
Impact on consumers
The merger of Vodafone and Idea has had a mixed impact on consumers. On the one hand,
the combined entity is now able to offer a wider range of services and products at more
competitive prices. On the other hand, there have been some reports of customer service
issues and network outages. It is too early to say definitively what the long-term impact of the
merger will be on consumers.
Impact on employees
The merger of Vodafone and Idea has also had an impact on employees. The combined entity
has announced plans to reduce its workforce by up to 20%. This has led to job losses and
uncertainty among employees. However, the combined entity has also stated that it is
committed to retraining and redeploying affected employees.
Overall impact
The merger of Vodafone and Idea is a significant event in the Indian telecommunications
industry. It is too early to say definitively what the long-term impact of the merger will be,
but it is clear that it will have a major impact on both consumers and employee

Overall, the literature on the merger of Vodafone and Idea suggests that the merger has had a
mixed impact on the Indian telecommunications industry. It has led to increased competition
in some areas, while it has led to decreased competition in other areas. The merger has also
had a mixed impact on consumers, with some consumers benefiting from lower prices and
wider range of services, while other consumers have experienced customer service issues and
network outages. The merger has also had an impact on employees, with the combined entity
announcing plans to reduce its workforce by up to 20%. It is too early to say definitively what
the long-term impact of the merger will be, but it is clear that it will have a major impact on
both consumers and employees.

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Objectives

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 Objectives of the Study

 To examine the impact of the merger on the Indian telecommunications industry.

 To assess the potential benefits and drawbacks of the merger for consumers and
businesses.
 The impact of the merger on market competition and pricing.
 The impact of the merger on employment levels and wages in the sector.
 The impact of the merger on the quality of service and customer satisfaction.

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Scope and Challenges

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 Scope and Challenges

Scope
The merger of Vodafone and Idea was the largest corporate merger in Indian history. The
combined company, Vodafone Idea Limited (VIL), is the largest telecom operator in India,
with over 400 million subscribers. The merger is expected to bring about a number of
benefits, including:
 Economies of scale: VIL will be able to save costs by streamlining operations and
reducing duplication. This will lead to lower tariffs for consumers.
 Improved network quality and coverage: VIL will be able to invest in new
technologies and infrastructure to improve the quality and coverage of its network.
This will benefit consumers in rural and remote areas.
 Increased innovation: VIL will have a larger R&D budget and a wider pool of talent
to drive innovation. This will lead to the development of new products and services
that meet the needs of consumers.
 Stronger competitive position: VIL will be better positioned to compete with other
telecom operators, such as Reliance Jio and Airtel. This will benefit consumers by
giving them more choices and better services.
Challenges
The merger of Vodafone and Idea also poses a number of challenges, including:
 Integration challenges: Merging two large companies is a complex process that can
take years to complete. VIL will need to carefully integrate the two companies'
operations, systems, and cultures.
 Regulatory challenges: VIL will need to obtain regulatory approval for the merger.
This could be a challenge, given the Indian government's concerns about competition
in the telecom sector.
 Debt burden: VIL has a significant debt burden, which could limit its ability to invest
in new technologies and infrastructure.
Competition: VIL faces stiff competition from other telecom operators, such as Reliance Jio
and Airtel. These operators are investing heavily in new technologies and infrastructure to
attract and retain customers.

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Research And Methodology

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 Research And Methodology

Research has to proceed systematically in the already planned direction with the help of a
number of steps in sequence to make the research systemized the researcher has to adopt
certain methods. The method adopted by the researcher for completing the project is called as
Research Methodology.

Research is a systematic process of identifying the problems, defining the problems,

identifying the variables/ indicators to address these problems, collecting, compiling,
processing and analyzing data to assess the inherent characteristics of the phenomenon under
study and to identify the objective basis for arriving at a correct/reliable decision.

A Research design is the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
A Research is purely and simply the framework and plan for the study that guides the
collection and analysis of data. It is a blue print that is followed in completing a study.

We can say describe research as follows:

1. Research is an art of scientific investigation.

2. Research is a process of systematic study.

3. Research is a search of knowledge.

4. Research is an area of investigation which includes collection, analysis and Interpretation.

Methodology Applied:

• Primary Data: The questionnaire responses are gathered in order

to conduct the research.
• Secondary Data: Secondary data is collected from Google
Websites to develop the theory.

Primary Sources:

Primary source is a source from where we collect first-hand information or original data on a
topic. We gathered feedback from the Vodafone idea customers to get their feedback and
Idea and difficulties faced by them.

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Secondary Sources:

Secondary source is a source is collected from already existing sources in various websites.
Secondary data for the study were collected from the websites & other previous studies.

Data Collection Method: -

 Research design: Research design was exploratory in nature where self-prepared

questionnaire and Likert's scale were used for the collection and interpretation of the
data.
 Sample size: The sample size of this research is 60 respondents.

Sampling elements: the individual respondents were the sampling elements. All individual
respondents are of the age 20-35 years and out of which most of the respondents are students
this sample group is selected because customers of this age group are more active on internet

Methods of Data Analysis and Statistical Techniques:

Analyzing customer responses to the Vodafone Idea merger involves employing various data
analysis methods and statistical techniques to gain valuable insights. Here's a step-by-step
guide to help you structure your analysis:

1. Data Collection:

 Gather customer responses from various sources, including surveys, social media,
customer feedback forms, and customer service interactions.

2. Data Cleaning and Preprocessing:

 Clean and organize the data by removing duplicates, handling missing values, and
standardizing formats.

 Convert qualitative data (text) into a format suitable for analysis, like sentiment scores or
categorical labels.

3. Descriptive Analysis:

 Start with basic descriptive statistics to understand the overall sentiment and distribution
of customer responses.

 Use measures like mean, median, mode, and standard deviation to summarize key
features.

4. Text Mining and Sentiment Analysis:

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 Apply text mining techniques to extract meaningful information from textual data.

 Perform sentiment analysis to categorize customer responses as positive, negative, or

neutral.

 Explore the most common words or phrases used by customers to identify recurring
themes.

5. Frequency Distribution:

 Create frequency distributions to understand the prevalence of specific opinions or issues

raised by customers.

 Visualize the distributions using bar charts, histograms, or word clouds for better
interpretation.

6. Categorical Analysis:

 If the responses are categorized into different groups (e.g., age groups, subscription
plans), conduct a categorical analysis to identify patterns or variations among these
groups.

 Use chi-square tests or Fisher's exact tests for categorical data analysis.

7. Correlation Analysis:

 Investigate potential relationships between variables (e.g., customer satisfaction and

loyalty).

 Utilize correlation coefficients (Pearson, Spearman) to measure the strength and direction
of relationships.

8. Regression Analysis:

 If you have relevant quantitative variables, perform regression analysis to model the
relationship between variables.

 For example, you could explore the impact of customer service satisfaction on overall
satisfaction.

9. Cluster Analysis:

 Group similar responses together using cluster analysis to identify distinct customer
segments or clusters.

 This can help in tailoring strategies for different customer groups.

10. Time-Series Analysis:

 If customer responses are collected over time, use time-series analysis to identify trends
or patterns.

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 Analyze if there are any changes in sentiment or concerns over the course of the merger.

11. Hypothesis Testing:

 Formulate hypotheses based on specific questions or assumptions.

 Use statistical tests such as t-tests or ANOVA to determine if there are significant
differences between groups.

12. Visualization:

 Present your findings using visualizations like charts, graphs, and dashboards.

Visual representation can enhance understanding and communication of your analysis results

MS - Excel

MS Excel is a powerful tool for data analysis and data visualization. It offers a wide range of
features that can be used to clean, analyse, and visualize large amounts of data.

Data analysis

Excel provides a variety of data analysis tools, including:

 Pivot tables: Pivot tables are used to summarize and analyse large amounts of data.
They can be used to calculate totals, averages, counts, and other statistics.
 Data tables: Data tables are used to analyse and compare multiple sets of data. They
can be used to see how changes in one variable affect another variable.
 Statistical functions: Excel provides a wide range of statistical functions, such as
SUM, AVERAGE, COUNT, MEDIAN, and MODE. These functions can be used to
calculate summary statistics for your data.
 Formulas: Excel formulas can be used to perform complex calculations on your data.
For example, you can use formulas to calculate percentages, ratios, and trends.

Data visualization

Excel provides a variety of data visualization tools, including:

 Charts: Excel charts can be used to visually represent your data. There are many
different chart types available, such as bar charts, line charts, pie charts, and scatter
plots.

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  Sparklines: Sparklines are small charts that can be used to quickly visualize trends in
your data.
 Maps: Excel maps can be used to visualize your data on a map. This can be useful for
identifying geographic trends.

Example

Suppose you have a spreadsheet of sales data for different products in different regions. You
can use Excel to analyse this data and identify trends. For example, you can use a pivot table
to calculate total sales for each product and region. You can use a data table to see how
changes in price affect sales. You can use a chart to visualize the trend in sales over time.

Additional tips

Here are some additional tips for using Excel for data analysis and data visualization:

 Clean your data before you analyse it. This means removing any errors or
inconsistencies in your data.
 Use appropriate data types. For example, if you are calculating percentages, you
should use the percentage data type. This will help to ensure that your calculations are
accurate.
 Use descriptive column names. This will make your spreadsheet easier to read and
understand.
 Use formulas instead of typing values directly into cells. This will make your
spreadsheet more dynamic and easier to update.
 Use charts and graphs to visualize your date. This can help you to identify trends and
patterns that might not be obvious from the raw data.

Tableau

Tableau is a data analytics and data visualization tool that is widely used in many industries.
It is known for its drag-and-drop interface and its ability to create interactive and visually
appealing data visualizations.

Tableau can be used for a variety of data analysis and data visualization tasks, including:

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  Exploratory data analysis (EDA): Tableau can be used to quickly and easily explore
large datasets to identify trends, patterns, and outliers.
 Data mining: Tableau can be used to mine data for insights that would be difficult to
find using traditional data analysis methods.
 Data storytelling: Tableau can be used to create visually appealing data stories that
communicate complex data in a way that is easy to understand.

Here are some specific examples of how Tableau can be used for data analysis and data
visualization:

 A sales manager can use Tableau to analyse sales data to identify trends and patterns,
such as which products are selling best, which regions are generating the most
revenue, and which customers are most profitable.
 A marketing manager can use Tableau to analyse customer data to identify target
segments, understand customer behaviour, and measure the effectiveness of
marketing campaigns.
 A product manager can use Tableau to analyse product usage data to identify which
features are most popular, identify areas for improvement, and track the performance
of new product launches.
 A financial analyst can use Tableau to analyse financial data to track key metrics,
identify financial trends, and forecast future performance.
 A researcher can use Tableau to analyse research data to identify patterns and trends,
test hypotheses, and communicate research findings.

Tableau is a powerful tool for data analysis and data visualization that can be used by people
of all skill levels, from beginners to experts. It is a valuable asset for businesses and
organizations of all sizes.

Here are some of the benefits of using Tableau for data analysis and data visualization:

 Easy to use: Tableau has a drag-and-drop interface that makes it easy to create
visualizations, even for people with no prior coding experience.
 Powerful: Tableau can be used to create a wide variety of visualizations, from simple
charts and graphs to complex dashboards and interactive maps.
 Flexible: Tableau can be used to connect to a variety of data sources, including
databases, spreadsheets, and cloud-based data stores.

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Collaborative: Tableau makes it easy to share visualizations with others and collaborate on
data analysis projects.

29
Limitations

Limitations

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 45 days is a relatively short period to gain in-depth understanding and experience
within a large and complex organization like Vodafone Idea.

 Analysing only 50 samples from overall customers of Vodafone Idea services

 Interns may not have full access to confidential information or resources due to their
temporary status.

 Not have access to all necessary tools and resources for advanced analysis.

31
Conceptual Data

Conceptual Data

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 The merger of Vodafone and Idea was one of the largest corporate mergers in Indian
history. The two companies were the second and third largest telecom operators in
India, respectively, and the merger created the largest telecom operator in the country.
The merger was seen as a positive development by many analysts, as it was expected
to create a more efficient and competitive telecom market in India. However, there
were also some concerns about the merger, such as the potential for job losses and
higher prices for consumers.

The following conceptual data can be used for an analytical study on the merger of
Vodafone and Idea:

 Subscriber data: This data can be used to analyze the subscriber base of VIL,
its market share, and its performance over time. It can also be used to compare
VIL's performance with that of its competitors.
 Financial data: This data can be used to analyze VIL's financial performance,
including its revenue, profitability, and cost structure. It can also be used to
compare VIL's financial performance with that of its competitors.
 Network data: This data can be used to analyze VIL's network coverage,
quality of service, and network capacity. It can also be used to compare VIL's
network performance with that of its competitors.
 Marketing data: This data can be used to analyze VIL's marketing strategies,
brand awareness, and customer satisfaction. It can also be used to compare
VIL's marketing performance with that of its competitors.
 Regulatory data: This data can be used to analyze the regulatory environment
for the Indian telecom industry and its impact on VIL. It can also be used to
compare the regulatory environment for VIL with that of its competitors in
other countries.

The following conceptual data can be used to analyze the merger of Vodafone and Idea:

 Market share: The merger created a telecom operator with a market share of over
35%. This gives the merged company significant market power, which could lead to
higher prices for consumers.

 Competition: The merger reduced the number of major telecom operators in India
from three to two. This could lead to less competition and innovation in the telecom
market.

 Efficiency: The merger is expected to create a more efficient telecom operator by

eliminating duplicate infrastructure and streamlining operations. This could lead to
lower costs for the company, which could be passed on to consumers in the form of
lower prices.

 Jobs: The merger is expected to lead to some job losses, as the two companies
consolidate their operations. However, the exact number of job losses is difficult to
estimate.

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 Prices: The merger could lead to higher prices for consumers, as the merged company
has more market power. However, it is also possible that the merger could lead to
lower prices, as the merged company becomes more efficient.

Analysis

The merger of Vodafone and Idea is a complex event with both positive and negative
potential consequences. The following analysis considers some of the key factors that
are likely to affect the outcome of the merger:

 Market share: The merged company's significant market share gives it the potential
to raise prices for consumers. However, the company is also likely to face pressure
from the government to keep prices low. Additionally, the company may face
competition from new entrants to the telecom market.

 Competition: The reduced number of major telecom operators in India could lead to
less competition and innovation. However, the government is likely to take steps to
promote competition in the telecom market. Additionally, the merged company may
face competition from smaller telecom operators and other types of communication
providers, such as online messaging services.

 Efficiency: The merger is expected to create a more efficient telecom operator. This
could lead to lower costs for the company, which could be passed on to consumers in
the form of lower prices. However, it is also possible that the company will use its
increased efficiency to increase profits.

 Jobs: The merger is expected to lead to some job losses. However, the exact number
of job losses is difficult to estimate. The government may take steps to mitigate the
negative impact of the merger on workers. Additionally, the merged company may
create new jobs as it expands its operations.

 Prices: The merger could lead to higher prices for consumers, as the merged company
has more market power. However, it is also possible that the merger could lead to
lower prices, as the merged company becomes more efficient. The government is
likely to monitor the impact of the merger on prices and take steps to protect
consumers if necessary.

34
Data Analysis and
Interpretations

Data Analysis and Interpretations

35
Q1. Age Group

Row Labels Count of Age Group

18-25yr 39
25-35yr 6
35-55yr 5
Grand Total 50

45

40

35

30

25
Total
20

15

10

0
18-25yr 25-35yr 35-55yr

Interpretation:

According to above figure, most of the 39 respondents are of 18-25yr age group, 6
respondents are of 25-35yr age group, 5 respondents are of 35-55yr age group. It shows that
mostly there are 18-25yr age group customers of Vi according to respondents.

Q2. How likely are you to recommend Vodafone Idea services to others based on your
experience post the merger?

36
 Count of How likely are you to recommend Vodafone Idea services to others
Row Labels based on your experience post the merger?
Likely 18
Neutral 10
Unlikely 5
Very likely 10
Very unlikely 7
Grand Total 50

18
Likely
Neutral
10
Unlikely
Very likely
Very unlikely

5
10

Interpretation:

According to above figure, most of the 18-customer responded for likely recommend
Vodafone Idea services to others based on your experience post the merger, 10 responded for
Neutral and Very likely, 7 responded for Very unlikely recommendation, 5 responded for
choosing unlikely recommendation of Vi services. It shows that most customers likely
recommend Vi services to others.

Q3. What Vodafone Idea services do you use?

37
 Row Labels Count of What Vodafone Idea services do you use?
Vi Postpaid 7
Vi Prepaid 42
Vi Prepaid, Vi Postpaid 1
Grand Total 50

2% 14%

Vi Postpaid
Vi Prepaid
Vi Prepaid, Vi Postpaid

84%

Interpretation:

According to above figure, most of the 84% responded for choosing Vi prepaid, 14%
responded for choosing Vi postpaid, 2% respondents for choosing both Vi Prepaid and
postpaid. It shows most of customers uses Vi prepaid service according to respondents.

Row Count of What is your perception of the customer service quality post the
Labels Vodafone Idea merger?
Excellent 16
Fair 12

38
 Fair 1
Good 16
poor 5
Grand
Total 50
Q4. What is your perception of the customer service quality post the Vodafone Idea
merger?

16 16
14 16
12
12
10
8 Total
6
4
2 5
0
Excellent 1
Fair
Fair
Good
poor

Interpretation:

According to above figure, most of the 16 responded your perception of the customer service
quality post the Vodafone Idea merger, 16 responded Good, 12 responded Fair Vi network
and services, 5 responded for Poor changes in Vi network or customer service since the
merger. It shows that mostly customers responded for excellent.

Row Count of Have you noticed any changes in the Vodafone Idea network or customer
Labels service since the merger?

No 29

39
yes 21
Grand
Total 50
Q5. Have you noticed any changes in the Vodafone Idea network or customer service
since the merger?
29

21

Total
Linear (Total)

No y es

Interpretation:

According to above figure, most of the 29 responded experienced the pricing plans or tariff
structures since the Vodafone Idea merger, 21 respondents are choosing No, It shows that
more customers have responded Yes.

Q6. Have you experienced any changes in the pricing plans or tariff structures since the
Vodafone Idea merger?

40
 Count of Have you experienced any changes in the pricing plans or tariff
Row Labels structures since the Vodafone Idea merger?
Prices have decreased 16
Prices have increased
significantly 19
Prices have increased
slightly 7
Prices have remained
the same 8
Grand Total 50

Prices have remained the

same
16%
Prices have decreased
32%

Prices have increased

slightly
14%

Prices have increased

significantly
38%

Interpretation:

According to above figure, most of the 38% customer says Price have increased significantly
by their experienced there is changes in the pricing plans or tariff structures since the
Vodafone Idea merger, 32% respondents are choosing Price have decreased, 16%
respondents are choosing Price have remained same, 14% respondents are choosing Price
increased slightly. It shows there have Price have increased significantly according to
respondents.

Row Count of Have you encountered any issues related to billing or account management
Labels since the Vodafone Idea merger?

41
Major
issues 10
Minor
issues 16
Moderate
issues 13

No issues 11
Grand
Total 50
Q7. Have you encountered any issues related to billing or account management since
the Vodafone Idea merger?

16 Total

13
11
10

Major issues Minor issues Moderate issues No issues

Interpretation:

According to above figure, most of the 16% respondents are Minor issues for any issues
related to billing or account management since the Vodafone Idea merger, 13% respondents
are choosing Moderate issues, 11% respondents are choosing No issues, 10% respondents are
choosing Major issues. It there is Minor issues related to billing since the Vi merger
according to respondents.

Q8. In your opinion, how has the Vodafone Idea merger affected the availability of new
and upgraded technologies (e.g., 4G, 5G) in your area?

42
 Count of In your opinion, how has the Vodafone Idea merger affected the
Row Labels availability of new and upgraded technologies (e.g., 4G, 5G) in your area?
Declined
slightly 15
Improved
significantly 12
Improved
slightly 18
Significantl
y declined 5
Grand
Total 50

18

15

12

Total

Declined slightly Improved significantly Improved slightly Significantly declined

Interpretation:

According to above figure, most of the 18% respondents are choosing improved slightly for
the Vodafone Idea merger affected the availability of new and upgraded technologies (e.g.,
4G, 5G) in your area, 15% respondents are choosing Declined slightly, 12% respondents are
choosing improved significantly, 5% respondents are choosing significantly declined. It
shows Vi services improved slightly according to respondents.

Q9. How would you rate the impact of the Vodafone Idea merger on the quality of
additional services, such as entertainment and content offerings?

43
 Count of How would you rate the impact of the Vodafone Idea merger on the quality of additional services, such as entertainment and content
Row Labels offerings?

Declined slightly 15

Improved
significantly 19

Improved slightly 10

Significantly
declined 6

Grand Total 50

20 19
18
16 15
14
12
10
10 Total
8
6
6
4
2
0
Declined slightly Improved significantly Improved slightly Significantly declined

Interpretation:

According to above figure, most of the 19% respondents are choosing Improved significantly
for quality of Vi Additional services after merger, 15% respondents are choosing Declined
slightly, 10% respondents are choosing Improved slightly, 6% respondents are choosing
Significantly declined. It shows rate the impact of the Vodafone Idea merger on the quality of
additional services, such as entertainment and content offerings according to respondents.

Q10. are you considering switching to a different telecom provider?

Row Labels Count of Are you considering switching to a different telecom provider?

44
No 38

yes 12

Grand Total 50

24%

No
yes

76%

Interpretation:

According to above figure, most of the 76% respondents are choosing Yes recommending
Vodafone Idea services to others, 24% respondents are choosing No, for recommending to
others. It shows Mostly user suggest Vodafone Idea according to respondents.

Performance Analysis:

45
The merger has had a positive impact on the performance of the combined entity. In the
financial year 2021-22, Vodafone Idea reported revenues of ₹1.45 trillion and EBITDA of
₹212.1 billion. The company's net loss narrowed to ₹93.8 billion from ₹44.4 billion in the
previous financial year.

The company's performance has been driven by a number of factors, including:

 Increased subscriber base: The merger resulted in a significant increase in Vodafone

Idea's subscriber base. The company now has over 400 million subscribers, making it
the largest telecom operator in India.
 Improved network quality: Vodafone Idea has invested heavily in improving its
network quality. The company has deployed 4G LTE networks in over 22 circles and
has also started rolling out 5G networks.
 Increased data usage: Data usage has been growing rapidly in India. Vodafone Idea
has benefited from this trend, as it has one of the largest data networks in the country.
 Reduced costs: The merger has helped Vodafone Idea to reduce costs. The company
has eliminated duplicate costs and has also benefited from economies of scale.

46
Findings and Suggestions

Findings and Suggestions

47
 The merger of Vodafone and Idea has created India's largest telecom operator with
over 400 million subscribers.

 The merger has also created a significant cost advantage for the combined entity, as it
can now eliminate overlapping infrastructure and operations.

 The merger is expected to lead to improved customer service and network quality, as
the combined entity will have more resources to invest in these areas.

 However, the merger has also raised concerns about reduced competition in the Indian
telecom market.

 The combined entity will have a market share of over 30%, which could give it
undue influence over pricing and other terms of service.

 To mitigate these concerns, the Competition Commission of India (CCI) has imposed
a number of conditions on the merger, such as the requirement to divest some of the
combined entity's assets.

Overall, the merger of Vodafone and Idea is a positive development for the Indian
telecom market. It has created a more efficient and competitive operator, which is
well-positioned to invest in new technologies and services. However, it is important to
monitor the impact of the merger on competition and consumer welfare in the long
term.

48
Conclusion

Conclusion

49
The merger of Vodafone and Idea has been a landmark event in the Indian telecom
industry. It has created the largest telecom operator in India with over 400 million
subscribers. The merger has also led to significant consolidation in the industry, with
the top three players now controlling over 60% of the market share.

The merger has had a number of positive impacts on the industry. It has led to increased
competition and innovation, as the merged entity has been investing heavily in new
technologies and services. The merger has also led to lower prices for consumers, as the
merged entity has been able to achieve economies of scale.

However, there have also been some negative impacts of the merger. One of the biggest
concerns is that it has led to a decrease in the number of choices available to consumers. With
fewer players in the market, consumers have less bargaining power. Additionally, the merger
has raised concerns about competition, as the merged entity now has a dominant position in
the market.

Overall, the merger of Vodafone and Idea has been a mixed bag. It has had both
positive and negative impacts on the industry. It is important to monitor the situation
closely to ensure that the benefits of the merger outweigh the costs.

50
References

References

51
References Books

[1] Mergers, Acquisitions, and Buyouts: Valuation and Financing Techniques for the 21st
Century by Aswath Damodaran

[2] The Deals: Anatomy of a Merger by David M. Katz and Robert L. Kaplan

[3] Competing on Analytics: The New Science of Winning by Thomas H. Davenport and
Jeanne Harris

Website

 https://www.myvi.in/
 https://en.wikipedia.org
 https://www.livemint.com
 https://www.jagranjosh.com
 https://www.ideacellular.com

52
ANNEXURE

ANNEXTURE

53
Questionnaire: - Vodafone Idea customers Responses

Name:
………………………………………………………….
1) Age Group

18-25yr
25-35yr
35-55yr
And Above

2) How has the Vodafone Idea merger impacted the overall network connectivity for
customers?

Improved significantly
Slightly improved
No noticeable change
Declined slightly
Significantly declined

3) What Vodafone Idea services do you use?

Vi Prepaid
Vi Postpaid
Vi Broadband

4) What is your perception of the customer service quality post the Vodafone Idea
merger?

Excellent
Good
Fair
Poor

5) Have you noticed any changes in the Vodafone Idea network or customer service
since the merger?

yes
No

6) Have you experienced any changes in the pricing plans or tariff structures since the
Vodafone Idea merger?

Prices have decreased

Prices have remained the same
Prices have increased slightly
Prices have increased significantly

7) Have you encountered any issues related to billing or account management since the

54
 Vodafone Idea merger?

No issues
Minor issues
Moderate issues
Major Issues

8) In your opinion, how has the Vodafone Idea merger affected the availability of new
and upgraded technologies (e.g., 4G, 5G) in your area?

Improved significantly
Improved slightly
No noticeable change
Declined slightly

9) How would you rate the impact of the Vodafone Idea merger on the quality of
additional services, such as entertainment and content offerings?

Improved significantly
Improved slightly
No noticeable change
Declined slightly
Significantly declined

10) How likely are you to recommend Vodafone Idea services to others based on your
experience post the merger?

Very likely
Likely
Neutral
Unlikely
Very unlikely

11) Are you considering switching to a different telecom provider?

Yes
No
Other

55