Vodafone-Idea, one of India’s three major telecom companies, is expected to make a major announcement later today. The strategic announcement will be made via a virtual conference.
Vodafone Idea is likely to relaunch its new brand today, unveiling a completely new identity and communication around it. The new brand identity is to combine and relaunch the products. the organization has till now been advertising the two brands separately, the officials of the telco reported.
Interested parties have been offered a web portal to register for the live announcement. It is speculated to be a major investment announcement from global stakeholders looking to enter India’s telecom industry.
Recently, due to an increase in competition, Vodafone-idea has been losing its customers rapidly and is also under fire to pay its Adjusted Gross Revenue dues to the Indian government.
The official said, unveiling the new brand is to showcase its superior call quality and top notch services.
To attract a new set of subscribers, Vodafone-idea assured superior quality under its new brand and further user erosion can be prevented. Erstwhile, the Idea cellular had more rural reach, Vodafone was popular among urban areas. The telecom has already integrated its postpaid plans under its Vodafone brand.
But, Reliance Jio and Bharti Airtel, has been steadily snatching customers from the telecom.
The analyst has suggested, the only way for Vodafone-idea escape fro the AGR on-sought, that has taken a heavy toll on their balance sheet is by selling its stake to investors and attracting heavy investments.
The earlier reports stated that the managing board of Vodafone’s idea has sanctioned the sale of equity and non-convertible defenders, in an attempt to raise over Rs.25,000 crores.
Out of its Rs. 58,000 crore of dues, Vodafone-idea has successfully managed to pay Rs 7,800. Vodafone-idea and other telecom operators have been allowed a period of 10 years, to clear all AGR dues in yearly installments. Even in this difficult situation, big names like Google. Amazon and Verizon have been linked with talks of investing in Vodafone-idea.
It will be interesting to see what strategic announcement does Vodafone-Idea makes in order to boost its position in the market. Injection of fresh funds will also allow Vodafone-Idea to upgrade its network infrastructure.
Which will be crucial for the operator to reduce the erosion of subscribers from its network. To improve its poor network quality, and to increase its average revenue per user. It can further increase its operating revenue and allow Telecom to stay afloat in the Indian telecom market.
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