Synergy will bring in Rs 6,200 crore, Vodafone Idea says in capex plan

Vodafone Idea has said the Rs 25,000-crore capital it has raised is a needed shot in the arm.

The country’s largest telecom operator in terms of subscriber numbers has been struggling to raise its share of subscribers in the market for fourth-generation (4G) technology services. After the merger of Idea with Vodafone, the expected synergy benefits have yet to meet analyst estimates. However, the management says it is confident that equipment redeployment would itself generate Rs 6,200 crore.

“About 70,000 of duplicate network equipment on the same towers will be redeployed across the 130,000 remaining sites to create a 4G layer there. That equipment is worth Rs 6,200 crore and will create additional capacity,” said Akshaya Moondra, its finance head.