Vodafone India and Idea Cellular Ltd. merged on August 31, 2018. The new firm Vodafone Idea Limited is a GSM operator offering 2G, 3G and 4G VoLTE mobile services in pan India.
It also provides services for Mobile payments, enterprise offerings and entertainment and it is accessible by both digital channels and on-ground touchpoints in pan India.
Vodafone Idea Ltd. is the second-largest mobile telecommunication network in India and the sixth-largest in the world.
A) Why Vodafone India and Idea Cellular Ltd. merged?
1. Telecom sector was witnessing a huge tariff war
2. There was a reduction in margin due to telecom operator Reliance Jio.
3. Both the firms were debt-ridden with the combined debt of 1.15 lakh crore.
4. To reduce the operation cost and capital expenditure and get relief from cut-throat competition in the telecom sector.
5. To reduce duplication cost and an increase in margin substantially.
B) What are the benefits customers will get from the merger?
1. Customers won’t witness a major change in mobile phone recharge and payment of phone bills because respective websites of Vodafone India and Idea Cellular Ltd. is still working on an old domain.
2. Customers can get a better network and better coverage than before because the merged entity may be a more robust ecosystem of cellular towers.
3. Customers can avail new technology because the merged entity will have a better hold on digital services.
4. Customers can get services at a similar price to Reliance Jio.
C) What is the performance and market share of Vodafone Idea Ltd.?
1. In June 2019, Vodafone Idea Ltd. is struggling to make more sales as the company experiences a reduction in revenue by 4.3% and a stiff drop in operating profit by 22%.
2. Vodafone Idea Ltd. is facing a challenging situation to sustain in the market against Bharti Airtel and Reliance Jio who are leading market leaders in the year 2019.
3. The data users of Vodafone Idea fell by 2%.
4. The minimum recharge plan of Vodafone Idea Ltd. has not encouraged the customers and thus enforced the company to alter the plan.
5. Customer Retention for Vodafone Idea is reducing continuously. The market share of Vodafone Idea Ltd. has been dropped to 27.8%. Two years ago the combined market share of Vodafone India and Idea Cellular Ltd. was 42.5%.
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D) Astrological observations
Launch date: August 31, 2018
Place: Mumbai, Maharashtra, India
a) What are the astrological observations for Vodafone Idea Ltd.?
In the Solar chart, the lord Mars is exalted and conjunct along with malefic Ketu and the Mercury is afflicted along with Rahu. The Sun is placed in its sign. The Moon and Jupiter are in opposition. Venus is debilitated in the chart.
The current transiting Jupiter is aspecting the tenth house of the business and on the other hand, the current transiting Saturn-Ketu are moving over the natal Saturn which may not allow generating desired business volume so easily.
b) Why is the sales and market share of Vodafone Idea Ltd. continuously decreasing?
The current transiting Rahu is passing through the eleventh house of gains which may be the root cause of a continuous decrease in market share of VodafoneIdea Ltd. Also, the house of competition is afflicted by Mars-Ketu, this may create tough competition.
c) What kind of improvement Vodafone Idea Ltd. has to do with the products to increase its market share?
The Saturn is aspecting the seventh house of partnership which indicates that the VodafoneIdea team will need to bring with some innovative ideas and schemes which will attract customers and improve its market share. Also, both will require to work on call-drop issues which many customers are facing at times. VodafoneIdea needs to keep aside its monopolistic policies to serve the customer better and win the trust of its users again.
Mercury-Rahu combination indicates that VodafoneIdea will require some extra efforts to attract new customers through advertisements on hoardings, televisions, FM stations etc. Also, they should come with any innovative theme like ZooZoo as it may help the company to increase its market share.
d) What would be the financial position of Vodafone Idea Ltd. in the upcoming time?
VodafoneIdea Ltd’s finance path may not be easy as the current transiting Saturn-Ketu may cause some obstacles in the financial path of the company. So VodafoneIdea may need to move ahead in step-wise manners. They should also avoid investing in major finances at least until mid-January 2020. So there may be a tough fight from its competing companies in the coming future.
e) Will Vodafone Idea limited be able to come back in the telecom sector with its new schemes and products?
Yes, VodafoneIdea may try to come back with some new schemes and innovative products to attract new customers in the telecom sector post-October 2019 which may help the company towards growth up to some extent. As the current transiting Jupiter is aspecting the tenth house of business. Though their path may not be easy, as mentioned above the transiting Saturn may test their skills and patience.
f) Why was the new scheme of minimum recharge plan a failure?
As mentioned above, the house of competition is afflicted by Mars-Ketu which indicates a lack of consistency in the desired revenue generation which ultimately affects the company’s new scheme of minimum recharge plan as well. Resultantly this plan has rolled out by the company to generate more revenue and arrest the trend of customers.
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The GaneshaSpeaks.com Team