Vodafone Idea rebrands itself as Vi


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Uploaded on Sep 9, 2020

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Vodafone Idea rebrands itself as Vi

VODAFONE IDEA REBRANDS ITSELF AS VI INTRODUCTION • Vodafone Idea has announced its new unified brand identity by renaming all its products under a new name and logo “Vi”. • The Beleaguered telecom operator, announced the rebranding of the company through a virtual platform. Source: Yahoo News India COMPANY PROFILE • Vodafone Group plc is a British multinational telecommunications company. It predominantly operates services in the regions of Asia, Africa, Europe, and Oceania. • Vodafone Idea Limited, d/b/a Vi is an Indian telecom operator with its headquarters based in Mumbai, Maharashtra. It is a pan-India integrated GSM operator offering 2G, 3G and 4G, 4G+ and VoLTE.  Source: Yahoo News India REASON BEHIND REBRANDING • The integration into one brand is believed to be the company’s efforts to reduce the cost of maintaining two brands. • The rebranding was done as the telecom operator has been losing customers Source: Business Standard ABOUT “VI” • VI is built to be strong, ever-dependable, agile, intuitive and a brand in tune with the needs of the customers in these ever-changing times. It is designed to help customers move ahead in life, for a better today and a brighter tomorrow. Source: Bloomberg Quint LOSS OF COMPANY • The Supreme Court ordered to pay over Rs 50,000 crore in dues to the government in 10 years’ time. • The debt-ridden joint venture had last month reported its eight quarterly loss. Source: The Economic Times PEOPLE & PROCESS • Vodafone Idea came together as a merged entity two years ago. • They focused on integrating two large networks, people and processes. Source: The Hindu FOCUS • Vodafone focusing on premium urban brand, Idea has been a mass rural-focused brand. Following the merger, the urban-rural appeal of the two brands took a hit. • The rebranding comes at a time when Vodafone Idea has seen its user base falling from 408 million at the time of the merger to 280 million at the end of June 2020. Source: Hindustan Times DIGITAL EXPERIENCE • The brand integration not only marks the completion of the largest telecom merger in the world, but also sets us on our future journey to offer world class digital experiences to 1 Billion Indians on strong 4G network Source: Times of India REVENUE • Vodafone Idea, which faces a payment of more than Rs 58,000 crore as tax after a Supreme Court verdict, has only paid Rs 7,850 crore Adjusted Gross Revenue (AGR) dues till date. • The Telcom will have to pay nearly Rs 1,128.4 crore as AGR dues every quarter for the next 10 years. Source: Stock Analysis EQUITY INVESTOR • The chances of an equity investor will improve once the firm is able to improve its Ebitda, which at the current level is not enough to even service the finance costs on its total debt which exceeds ₹1.2 trillion Source: The Financial Express