Vodafone Idea has launched a new brand identity in India as it attempts to mount another challenge in the space that has seen Reliance Jio and Bharti Airtel strengthen in recent quarters. Vodafone Idea, now VI, is renewing its approach following the AGR verdict a few days ago. Vodafone Idea also says it has completed the network integration, which it says is the world’s largest mobile network integration in record time. Vodafone Idea has seen its user base shrink significantly, dropping to 280 million users at the end of June this year, compared to 408 million users at the time of the Vodafone and Idea merger two years ago. Since then, the Vodafone and Idea brands have remained separate, although a few months ago, Vodafone Idea unified postpaid plans for Vodafone and Idea users under the Vodafone RED umbrella. But the rebrand may also bring price increases for users of prepaid VI and postpaid VI, something the company has already hinted at.
VI also says that they will continue to partner with the government of India to advance the mission of the digital economy. Traditionally, Idea has been strongest with a large part of its user base in Tier II and Tier III cities in India, while Vodafone has remained focused on urban regions, Tier I cities. Tariff wars have seen Reliance Jio and Bharti Airtel win in recent quarters and Vodafone Idea struggled with declining revenues. VI has now integrated network operations in 19 telecommunications circles across India, including the merger of the 4G network.
“In their various ups and downs, since the mid-1990s, Vodafone and Idea led the growth of the sector for more than decades separately. Both Vodafone and Idea have set new benchmarks in network experience, rural connectivity, customer service, business mobility solutions, ”says Kumar Mangalam Birla, president of Aditya Birla Group, announcing the rebrand.
But there could be rate hikes on the way for prepaid and postpaid users as VI seeks to increase average revenue per user (ARPU) figures. Right now VI’s ARPU is around Rs 114, which is significantly lower compared to Reliance Jio, which has around Rs 140 ARPU from its user base, while Airtel records around Rs 157. VI has not No new prepaid or postpaid plans announced at this time, although we can expect some new rate options in the coming days. Right now, Vodafone Idea prepaid plans with 28 days validity start at Rs 49, while postpaid plans under the Vodafone RED brand are priced at Rs 399 and up. The Vodafone RED X plan, which has been under the TRAI scanner, is priced at Rs 1,099 per month and bundles multiple offers together with the promise of better data speeds on the 4G network.
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