Cash-strapped telecom operator Vodafone Idea has unveiled a new brand identity, Vi (read as "We"), on Monday, two years after they merged into one entity. While a new leadership team was put in place post the merger of Vodafone Idea, the circles of both telcos continued to operate separately. Going forward, Vi will represent the combined brand identity, it said.
Vodafone Idea said in a statement that the integration of two brands is a culmination of the ‘largest telecom integration’ in the world.
The company said that starting today, customers will receive personalised communication about the new brand identity and the company will also start spreading the message through advertisements starting 8pm on Monday.
Ravinder Takkar, MD & CEO, Vodafone Idea Limited said that the telco has also deployed many principles of 5G architecture to help its transform into a ‘future-fit, digital network for the changing customer needs’.
“With Vi we are confident of building a brand that continues to command respect and trust, and will be admired and loved by all. We look forward to your continued support as we get ready to deliver a superior Vi experience,” he added.
Thakkar reportedly said during the conference that everyone is selling below cost, and Vodafone Idea (whose Average Revenue Per User (ARPU) slipped in the last quarter) was not “not shy” to take the step of increasing tariffs.
Kumar Mangalam Birla, Chairman of Aditya Birla Group & Vodafone Idea Limited said during the press briefing that the rationale for joint venture remains unchanged, which is to create a future-fit telecom player.
"India is the 2nd largest telecom market and the largest data consumer, globally, With 1.2 Bn Indians accessing voice and data services at the world's lowest tariffs across 5 lakh villages, the ubiquitous wireless network in India is unmatched for its reach and impact in people's lives. With our new brand - Vi, we stand committed to partner the Government to accelerate India's progression towards a digital economy, enabling millions of citizens to connect to the digital revolution and build a better tomorrow,” he added in a statement.
Nick Read, CEO of Vodafone Group Plc said in a statement, “Back in 2018, the combination of Vodafone India and Idea created the new champion for the government's vision of Digital India. As the integration of the two businesses is now complete, it's time for a fresh start. That's why we believe that now is the perfect time to launch Vi one company which combines the strengths of Vodafone India and Idea, Vi's focus will be to deliver to citizens and businesses in India a superior network experience, better customer service and leading products and services."
The new brand entity also comes at a time when Vodafone Idea has been consistently losing subscribers to Reliance Jio every month. As per data available from the Telecom Regulatory Authority of India (TRAI), in May, Vodafone Idea lost 47.26 lakh users taking its subscriber base to 30.99 crore. While reporting its April-June results, Vodafone Idea said that its subscriber base at the end of June 2020 stood at 27.98 crore users.
With the latest Supreme Court ruling in the Adjusted Gross Revenue matter, it now faces AGR dues of Rs 50,400 crore, after paying off Rs 7,854 crore so far.
On Friday, the Board of Directors of Vodafone Idea approved raising of up to Rs 25,000 crore in funds through the issue of equity shares as well as unsecured or secured debentures. Neither of them can be more than Rs 15,000 crore and combined exceed Rs 25,000 crore.
There were also reports of Amazon and Verizon looking to invest in the telecom company, but Vodafone Idea has since denied the news.
The Vodafone Idea stock was trading up by nearly 7% in anticipation of the announcement and was down to being only over 3% up by 12 30pm, post the announcement.