What excites you about this transaction?
This takes Idea Cellular into the big league of telecom players in the country. Just before this transaction, we became the fifth operator from being the sixth, and the merger makes us an even stronger number five player.
It gives us entry into two very significant circles, Punjab and Karnataka, where rather than building from the scratch, we are choosing to take over Spice Communications.
Isn't the non-compete fees of Rs 544 crore to BK Modi a bit high?
The non-compete fees is nothing unusual and we believe that it is very much in line with the industry and Sebi norms. The debt of Spice Communications, which is around Rs 1,000 crore, is also coming to Idea Cellular's books.
What does TMI bring to the table?
TMI will have up to 20 per cent stake in the merged entity and will get one seat on the board. There are synergies in 3G, international long distance (ILD) and roaming operations that can be brought to the table.
Are you planning to phase out the Spice brand?
I think within the next six months, the brand name of Spice could be phased out with Idea Cellular being brought in. The plan is to make Idea Cellular a nationwide brand.
