Vodafone Idea changed its name on Monday, saying that the Vodafone and Idea brands are now “Vi”. Ravinder Takkar, CEO of Vodafone Idea, has focused on “integrating two large networks of individuals and processes” since the merger of Vodafone and Idea Cellular. The company’s rebranding initiative takes place in a very context of intense competition within the country’s telecommunications sector, which is incredibly rich in debt.
The name Vi isn’t an abbreviation for Vodafone and Idea. Vi, which says “we,” reflects the collective nature of Indian society, the corporate said.
Vodafone Plc’s Indian subsidiary merged with Idea Cellular in August 2018. However, Vodafone and Idea had two different brand identifications thus far In their various avatars, since the mid-90s, Vodafone and Idea steered the expansion of the arena for over decades separately. “Both Vodafone and Idea have set new benchmarks in network experience, rural connectivity, customer service, enterprise mobility solutions”, said Kumar Mangalam Birla, chairman of Aditya Birla Group, announcing the rebranding.
However, for prepaid and postpaid users, rates can increase because of the sixth rate attempts to extend the user’s average revenue (ARPU).
Currently, the ARPU of VI is around Rs 114 which is significantly less than Reliance Jio, who buys around Rs 140 from the user base.
VI has not announced a brand new prepaid or postpaid plan at now, but some new prices are expected within the near future.
The telco which is short of cash is trying to retain capital because the Indian market is facing stiff competition from major rivals Bharati Airtel and Reliance Jio.
On September 1, the Supreme Court allowed telecom players a 10-year limit to pay Adjusted Gross Income (AGR) dues and directed them to pay to 10% of the arrears by March 31, 2021. Vodafone Idea has already paid a little of its AGR dues and has accumulated Rs 50,399 crore. Solicitor General Tushar Mehta had said on July 20 that the arrears remained.