Why did Vodafone and Idea merge to become Vi?

Vodafone and Idea were once very popular and considered a good company, with many people using their services. But what happened that now Vodafone is not used as much?

Let’s find out. It was the third-largest mobile telecommunications network in India and the ninth-largest in the world as of August 31, 2018. On that date, it merged with Idea Cellular in India to form a new entity called Vodafone Idea Limited. Vittorio Colao, the CEO of Vodafone, stated that both brands would continue to operate separately after the merger.

This means they will not become a new company together but will continue under the names Vodafone and Idea. So, have the two companies become one from today? No, because the official announcement has been made, but the process has not been completed yet.

Why did Vi fail in India?

The Vi company initially did well in India, but gradually it started to fail. There was a time when people only used Vi because it provided good network service. Let’s find out why Vi has failed in India.

In recent months, Vodafone Idea has been trying to raise 25 thousand crore rupees, but they have come up empty-handed. The Vodafone Group, which holds a 44.39% stake in the joint venture, and ABG, which holds 27.66%, have refused to invest more money.

Must Read: Why does Micromax fail?

Vodafone Idea, the third-largest company in India, has a loan of about $4 billion from banks and also owes the government a significant amount. The company could potentially sink under the 23,000 crore rupees loan from banks, and it has been guaranteed a huge loan for the banks.

Will Vi survive in India?

The Vi company has been operating in India for quite some time, but since the arrival of 5G, Vi has faced many problems because the introduction of new technology has led to significant losses, as it hasn’t advanced at the same pace.

The company has had to take loans due to a lack of funds, which has resulted in debt. With competitors like Jio and Airtel moving forward with new technologies, Vi may take a lot of time to catch up, which could lead to more problems.