Vodafone and Idea are Now ‘Vi’, Merger of Idea Cellular and Vodafone India completed


  • Vodafone and Idea have launched a new telecom brand Vi in India.
  • Currently, Vodafone and Idea jointly have about 28 crore subscribers in India.
  • Perhaps Vi’s tariff plans may increase.
Vodafone and Idea are Now Vi

India’s No. 2 and No. 3 giants Telecom companies Vodafone and Idea have launched a new telecom brand Vi in India after completing the official merger of their company. Even after the merger, both the companies were providing convenience to the customers according to their network and their plans, now the customers of both companies will be provided all the facilities on the same platform.

This official merger was approved by the government in 2018 itself. At that time it had become the largest telecom company in India with around 40 crore subscribers. As per the merger, Vodafone Group merged 45.1% of its shares and Idea Group had 54.1% of its shares. Its chairman was Mr. Kumar Mangalam Birla, owner of Idea Group.

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Why delay in completing the merger ?

The merger was to be completed in 2018 but the Supreme Court directed the Vodafone Group to fill the outstanding AGR of 58,000 crore in 1 month. Finally, after a lengthy legal battle, the Supreme Court has allowed the company 10% of the outstanding AGR in the current financial year and the remaining 10 installments in the next 10 years. Because of this the merger took so long to complete.

What is AGR controversy ?

The full name of AGR is Adjusted Grass Revenue. The AGR was implemented in the New Telecom Policy 1999. According to which telecom companies will have to pay AGR on all their income, but in 2005, the companies challenged this definition of AGR in the Supreme Court. The company wanted to give AGR only on the income from telecom service delivery, which the Supreme Court dismissed as an unfair appeal of the companies.

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Tariff plan of Vi

On the occasion of the launch of the new brand Vi, the company has also indicated to increase the tariff, but no plan has yet been disclosed how much tariff will be increased in which plan.

The company also suffered heavy losses by Jio

Jio has added about 12 crore subscribers of Vodafone and Idea to its network on the basis of its excellent features and excellent network as soon as it comes in the telecom sector. Currently, Vodafone and Idea jointly have about 28 crore subscribers in India.

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