Vodafone and Idea on Monday declared the completion of the merger by rebranding the name and logo as ‘Vi’.
“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 our strong 4G network… With Vi, we are confident of building a brand that continues to command respect and trust, and will be admired and loved by all”stated MD and CEO, Ravinder Takkar
Why did the merger decision come up?
As Reliance Jio entered the market, the two companies struggled with tariff wars and their profit margins stood negligible therefore a merger was planned.
Vodafone Idea together became the largest operator in the country with over 400 million subscribers but lost 100 million after Jio.
The decision of the merger would aid in reducing the operation cost and maintaining the competition. Vi will be capable enough to provide a 4G spectrum to telecom circles across the country. The debt speculated by both the companies had been Rs. 1.15 lakh crore, as per earlier estimations.
As per the latest verdict get a period of 10 years but 10% has to be paid by March 31 and installments by February 7 every year.
What is expected from rebranding?
“India is the second-largest telecom market and the largest data consumer, globally. With 1.2 billion Indians accessing voice and data services at the world’s lowest tariffs across 500,000 villages, the ubiquitous wireless network in India is unmatched for its reach and impact in people’s lives”, voiced chairman, Mr. Kumar Mangalam.
He further added,” With our new brand, Vi, we stand committed to partner with 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.”
Vi is looking forward to raising hybrid debt through convertible bonds as per reports. Fundraising has been approved of Rs. 25000 crore via Global Depository Receipts (GDRs), American Depository Receipts (ADRs), Foreign Currency Convertible Bonds (FCCBs), convertible debentures, and warrants, though the company has not yet agreed with the same.
“Vi leverages the strength of two of India’s most loved brands, Vodafone and Idea. Vi is vibrant, exciting, and throbs with the spirit of rising India. It is committed to help every Indian move ahead in life. Vi is dynamic, flexible, fluid, and always on. In the months to come Vi will continuously unpack exciting possibilities for its customers. Vi is built for the new age and for the connected ecosystem. We invite everyone to join this exciting journey as we move towards building a better tomorrow.” mentioned Kavita Nair, Chief Digital Transformation and Brand Officer of Vi.