Vodafone and Idea which have been together since 2018 after the merger, today finally announced a combined brand identity called “Vi”. Vodafone's Indian arm and Idea Cellular had merged into a single entity in August 2018. After heavy losses and low revenue, Vodafone and Idea decided to merge into one entity called the ‘Vodafone Idea” group with the chairman as Kumar Mangalam Birla, headquartered at Gandhinagar, Gujarat.
However, both the brands were kept separate as Vodafone had more urban presence while Idea had a stronger rural presence. Also, both the networks were integrated within this period. The telco has been losing customers to Jio for a long time now. With a new identity as “Vi”, the company can start afresh with its brand image.
Due to the falling, ARPU, Vodafone Idea has suffered a heavy loss in revenue as well as subscribers. Vodafone Idea CEO Takkar said that the telco is ready to take the first step to raise prices. With altogether new tariffs, he aims to improve the telco's ARPU which is at Rs 114 compared to rival Airtel and Jio's at Rs 157 and Rs 140.
A few days back, the Supreme Court gave Vodafone Idea 10 years to pay adjusted gross revenue dues (AGR) dues. It owes over Rs 50,000 crore to the Department of Telecommunications (DoT) as AGR-related dues. Following this, the company has allowed a plan to raise Rs.25,000 crores.
There was strong speculation that Amazon and Verizon are going to invest in the company but it turned out to be false. Although, with the news, the stock prices of the company shot up to 10%. It will be interesting to see if “Vi” branding will revive the company and make it profitable again.
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