Vodafone Idea, which last week got a respite from the Supreme Court with regards to repaying government dues, today launched a unified brand "Vi", signifying the completion of the merger between two telecom companies.
Launching the new brand, Ravinder Takkar, Managing Director & Chief Executive Officer of Vodafone Idea Ltd said, "Vodafone Idea came together as a merged entity two years ago. We have, since then focused on integrating two large networks, our people and processes. And today I am delighted to present Vi, a brand that will bring important meaning to lives of our customers."
"The unified brand has a strong and reliable network, and built to meet the "digital needs of customers," he added.
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Why the rebranding now?
The re-branding was in a sense the need of the hour for the telecom entity. Though merged in August 2018, the two companies, rather strangely, pursued an independent brand and advertising strategy.
Idea focused on rural and tier-2 cities, while Vodafone had its sights fixed on urban customers.
Though this looked sensible, there was no cohesiveness in the company's approach.
Vodafone Idea, earlier this year, moved its premium postpaid customer base to brand Vodafone from Idea. This was inevitable as Idea did not have the pull in the post-paid premium segment. But its also suggested that two different brand strategy was coming home to roost. The once largest operator in India, now has only 280 million users at June end --- a precipitous fall from 408 million at the time of merger.
In the event, the company had to re-brand itself as a single entity.
Taking on the challenge from Jio
Last week, the company said it was planning to raise funds up to Rs 25,000 crore through a mix of debt and equity instruments. The telco needs funds to expand its network and take on the mounting onslaught from Jio Platforms, which is on a different trajectory of growth. The Vodafone Idea's board has approved fundraising after the Supreme Court allowed it to make staggered payments of government dues. Vodafone Idea owes the government Rs. 58,254 crore.
After the breather from the government, reports have emerged that Verizon Communications and Amazon may invest more than $4 billion for a stake in Vodafone Idea.
Telecom analysts are hedging their bets on whether Vodafone Idea's new strategy would be enough to combat the marauding Jio Platforms. They feel that the company needs pluck as well as luck to rebound and take on the mighty challenge posed by Jio, which has big-ticket investors backing it and also a ruling dispensation that is seen to be friendly towards it.
But, in any case, the company may be believing that by re-branding to Vi, it is taking its first steps towards Victory. If not in spirit, then at least literally.
