After making one of the biggest mergers of telecom company in India, Vodafone India and Idea Cellular together became Vodafone India – and they are now planning to adapt a new strategy to conquer the Indian telecom market that is currently very influenced by Reliance Jio.
The entry of Reliance Jio in Indian telecom market triggered a market war to gain more customers among all telecom companies as Jio started offering dirt-cheap internet and calls. The battle got so fierce that some telecom companies were compelled to shut down, and even huge companies like Vodafone and Idea had to merge to survive in the telecom market. Now that the merger has happened, Vodafone Idea has to develop a new strategy to retain all of their lost customers, bring back the customers who had switched to Jio earlier and also attract new customers towards itself.
After the merger, Vodafone Idea holds a total of 422 million customers to become the largest telecom company in India, leaving behind Bharti Airtel and Reliance Jio on second and third position. However, they still have a huge number of customers who are drifting towards other options; which is why, Vodafone has developed a new strategy to revive, acquire and conquer the Indian telecom market. Balesh Sharma, the CEO of Vodafone Idea Limited that the company will invest in key profitable areas controlling the unnecessary costs, reducing the number of price plans and maintaining a low-value recharge for subscribers. All these exercises carried out just for raising the average revenue per user (ARPU) and they have no plans to increase the tariffs as of now.
The company has been on cost rationalism since the last several years, the hiring freeze was one of their cost-cutting strategies, through which unnecessary cost has been reduced. And they are currently focusing on expanding their 4G network – which is still as low as 50% in India, and the plan is to reach 80% 4G coverage all over the country by 2020. The hiring-freeze has proved to be really good the cut in cost and invest it in expanding their 4G network.