Vodafone Idea rebrands as Vi as it gears up for its second innings, says ‘not shy’ to hike tariffs
Vodafone Ideahas rebranded itself as Vi, completing the integration of the two brands, Vodafone and Idea.
- The company also hinted that it is taking the first steps towards a tariff hike.
- The rebranding and integration comes after adjusted gross revenue (AGR) verdict, resulting in a payment demand of ₹50,339 crore over the next 10 years.
- Check out the latest news and updates on Business Insider.
The new Vi branding has gone live already, with the company launching a new website and rebranded apps. Our sources tell us that the new design has also been spotted in a few retail outlets in a few cities already.
Making the announcement, Ravinder Takkar, MD & CEO, Vodafone Idea, said, “In less than two years time we have achieved the mammoth task of world's largest integration.As the integration of the two brands is complete, it's time for a fresh start,”.
“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,” said Kumar Mangalam Birla, chairman, Aditya Birla Group and Vodafone Idea.
Vi ‘not shy’ to hike tariffs
During the presentation, Takkar signalled that the telco is gearing up to take the first step towards another tariff hike.
While talking about the integration of Vodafone and Idea businesses, Takkar quipped that India has the lowest tariffs in the world. He said “everyone is selling below cost”. He also noted that the company is “not shy to take that step”, referring to tariff hikes.
According to a report by Jefferies Equity Research, dated September 1, Vodafone Idea could require up to ₹18,800 crore by the end of March 2023. The Jefferies report suggests that a minimum 10% hike in tariffs is to be expected, but Vodafone Idea needs as much as 27% hike to cover its cash flow needs.
The Supreme Court in its verdict on September 1 directed Vodafone Idea to pay up the remaining ₹50,339 crore in AGR dues over a 10-year period, even though the company sought a 15-year payment timeline.
Vodafone Idea will raise up to ₹25,000 crore by selling shares and taking loans
Vodafone Idea may need up to ₹18,800 crore in next two years and tariff hikes to survive, says a new report
Supreme Court directs Airtel, Vodafone Idea and others to pay AGR dues over 10 years