Vodafone Concept Ltd has unveiled a brand new model identification, because the struggling telco seemed to rediscover itself publish the apex court docket’s ruling on previous statutory dues.
VIL, which had about 280 million subscribers as of June, mentioned that Vodafone and Concept manufacturers will now be referred to as ‘Vi‘.
“A model with its eyes set on the long run, it’s constructed for and round prospects… The mixing of two manufacturers is a fruits of the most important telecom integration on the planet,” VIL mentioned in a press release speaking its new unified shopper model identification and positioning via a digital launch on Monday.
Elaborating on the brand new model, Ravinder Takkar, MD and CEO, Vodafone Concept mentioned, “Vodafone Concept got here collectively as a merged entity two years in the past. We’ve, since then focussed on integrating two giant networks, our individuals and processes.”
The model integration not solely marks the completion of the most important telecom merger on the planet, however will even set the corporate on its future journey to supply robust digital experiences to 1 billion Indians on its 4G community, he mentioned.
“VIL is now leaner and agile, and the deployment of many rules of 5G structure has helped us remodel right into a future-fit, digital community for the altering buyer wants.
“The brand new model launch signifies our need to not simply ship, however delight our prospects, stakeholders, communities and our workers and alerts our ardour and dedication to be a Champion for Digital India,” Takkar added.
The announcement comes shut on heels of Vodafone Concept board, final week, approving fund-raising plans of as much as Rs 25,000 crore via a mixture of fairness and debt devices, to maintain the corporate afloat.
The upcoming fundraising will provide a lifeline to cash-strapped VIL, which has suffered large losses, has been dropping subscribers and Common Income Per Person (ARPU), and faces excellent Adjusted Gross income (AGR) dues of about Rs 50,000 crore.
Within the latest previous there have been stories suggesting that Verizon and Amazon could make investments over USD four billion into the corporate, though Vodafone Concept itself clarified final week that whereas it continuously evaluates numerous alternatives as a part of company technique, there is no such thing as a such proposal at the moment earlier than the Board.
Earlier this month, the Supreme Courtroom directed telecom operators to pay 10 per cent of whole AGR-related dues this yr, and remainder of the funds in 10 instalments ranging from subsequent fiscal yr.
Fund infusion is essential for cash-strapped VIL, the third largest operator within the fiercely-competitive Indian telecom market the place Jio’s entry in 2016, with free calls and low-cost information pushed some rivals to exit, purchase, or merge to remain afloat.
Jio Platforms — the unit that homes India’s youngest however largest telecom agency Jio and apps — not too long ago secured Rs 1,52,056 crore from 13 traders together with Fb, Google, Basic Atlantic, Intel Capital and Qualcomm Ventures.
Notably, Vodafone Concept’s total AGR dues stood at over Rs 58,000 crore, of which the corporate has paid Rs 7,854 crore to the Division of Telecom up to now.
The statutory dues arose after the Supreme Courtroom, in October final yr, upheld the federal government’s place on together with income from non-core companies in calculating the annual AGR of telecom firms, a share of which is paid as licence and spectrum charge to the exchequer.
VIL has been underneath extreme monetary strain, and analysts had earlier cautioned that the corporate’s longer-term viability was underneath cloud.
In December, Vodafone Concept Chairman Kumar Mangalam Birla had mentioned VIL could must shut if there is no such thing as a aid on statutory dues.
The corporate had reported a staggering Rs 73,878 crore of internet loss for fiscal ended March 2020 – the very best ever by any Indian agency – after it provisioned for Supreme Courtroom mandated statutory dues.
It reported internet loss to Rs 25,460 crore for the June quarter after making further provisions to pay previous statutory dues, and had, at that time, mentioned its potential to proceed as going concern hinges on the Supreme Courtroom permitting extra time to pay dues.
The apex court docket has rejected the demand for a 20-year time for telcos to clear a mixed Rs 1.6 lakh crore in previous dues, however allowed the legal responsibility to be cleared in 10 years.
Moreover cost of AGR dues, VIL’s fund-raising will probably be vital provided that 5G is on the horizon, and business would require the firepower for making substantial investments into bidding for spectrum and community rollout.