This renewal is crucial for Vi to enhance its competition with other major telecom operators and to improve customer retention. The board of Vi is also considering a capital raise of Rs 20,000 crore through a preferential share issue.
Portions of the renewed deal will be based on a 'pay-as-you-go' model, which could provide more flexibility and scalability for Vi's services.
The renewal of the technology outsourcing pact between Vodafone Idea (Vi) and IBM is expected to have a significant impact on Vi's services. The deal will help Vi strengthen its IT infrastructure, which is crucial for the planned rollout of 5G services in India's top 100 cities across its 17 priority markets.
If the renewal deal materialise, IBM is likely to manage, maintain, and operate Vi's IT infrastructure and offer tech solutions around cloud computing and customer experience, which should lead to an improved customer experience. The use of modernisation and intelligent automation of data centres using AI is expected to unlock cost and operational efficiencies, boosting productivity levels at Vi.
Overall, this renewal is poised to provide Vi with the necessary technological support to compete effectively in the market and improve its service offerings to customers.
The entry of Reliance Jio has disrupted the market with its aggressive pricing strategies, causing a seismic shift in consumer preferences. Vi has been grappling with financial issues, including a heavy debt burden, which has limited its ability to invest in network infrastructure and expand services. The company has seen a decline in its Average Revenue Per User (ARPU) and subscriber base, leading to reduced revenue.
Facing the harsh competition from duopoly of Reliance Jio and Airtel, Vodafone Idea (Vi) is actively exploring various partnerships to enhance its digital offerings and enterprise solutions. Vi has partnered with several content creators and over-the-top (OTT) content providers such as ZEE5, Shemaroo Me, Hungama, YuppTV, and others to enrich its digital services on the MyVi mobile application.
The telco also has product bundling tie-ups with Amazon Prime, Disney Hotstar, Sun NXT, and Sony LIV for its premium customers. It also allied with Hungama Music to launch its music streaming service on the MyVi app, competing with other major music streaming services.
Besides, Vi has entered the e-sports segment by partnering with Gamerji and has also collaborated with Nazara Technologies for mobile games, offering over 1,200 games to users.
Vi has partnered with Xiaomi India to offer enhanced 5G experiences to users. A range of Xiaomi and Redmi smartphones have been tested and will be supported on Vi's 5G network post-launch.
In addition, Vi has entered into strategic partnerships with Hubbler, Eunimart, and Fiskl to strengthen its enterprise offerings, especially for small and medium organizations
These partnerships are part of Vi's strategy to transform into a comprehensive techco, offering a wide array of digital products and services to address the needs of today's digital society and enterprise customers.
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