If reports are to be believed, Vodafone India and Idea Cellular might come up with a new brand identity once the process of their merger completes and is likely to come into practice a year after closure of the transactions.
Vodafone India, the country’s second largest telecom service provider and Idea Cellular, India’s third largest telco are currently undergoing merger to chalk out new positioning that will attract customers and help them regaining their market share in the company. The merger of UK-based Vodafone and Birla-owned Idea will create India’s largest telecommunication operator in terms of number of subscribers and market value. Both companies are working closely on the merger to re-attract all their original entities in the country. Vodafone and Idea are expected to complete the process of merger and deal will be closed by the first half of 2018.
After completion, the companies have bigger plans. As per Economic Times’ citing, a senior level internal source said, “There will be a new brand identity – work has started on it.” The senior spokesperson also revealed that both companies are working on a new name and brand identity for the combined entity, which may come into effect a year after the transaction closes. So in about a year, all Vodafone and Idea users in India might fall under the umbrella of a new single brand name while maintaining their original identities. Also, a new brand identity will help them to start afresh with a new identity and no baggage to build up a company that can have a better take on Reliance Jio and current No. 1 telco Bharti Airtel in an intensely competitive market that has eroded revenue, profit and cash flows.
However, the internal sources also added that nothing is finalised yet and many options are being taken into consideration for discussions. Both Vodafone and Idea are looking up to maintaining their own identity and status quo for at least another year because the operational changes will create chaos and major issues due to a sudden brand change. So still, we may or may not see a new brand name for merged-up Vodafone and Idea – but they surely have some big plans on mind.