Vodafone Idea -- recently rebranded as Vi -- has suffered a string of losses in its top rung. Now, in order to hold on to its employees, the telco giant is giving all employees an extra month's pay as a one-time ex-gratia payout with the November 2020 salary.
There is, however, a caveat to the additional compensation -- Vi employees must remain on the payroll till March 31, 2021. If the employee fails to stick to the timeline, then the additional compensation would be deducted from the final settlement, stated a report in the Economic Times. This move comes as the company is trying to strengthen its 4G networks and hold on to its customers.
Vi has also elevated its Director of Marketing Avneesh Khosla to Chief Marketing Officer (CMO) that has been lying vacant for over two years. Chief Technology Officer Vishant Vora, legal head Kumar Das, Chief Technology Security Officer Amit Pradhan and brand officer Kavita Nair left the company in recent times. The telco has been making losses and is aiming to ramp up its 4G network and clear the adjusted gross revenue (AGR) dues.
Vi has been losing subscribers to its nearest and biggest rivals Jio and Airtel. The telecom operator lost as many as 8 million customers in September. Its revenue market share (RMS) also fell 22 basis points (bps) in the July-September period to 22.6 per cent.
The telco giant is aiming to raise Rs 25,000 crore that it will use to expand its network and pay off the AGR dues. As per earlier reports, the company had reached out to Oak Hill Advisors, Marathon Asset Management, Spectrum Asset Management, Anchorage Capital and Providence Investment Management as well as private equity firms such as Blackstone. Nevertheless, the company has over Rs 50,000 crore of AGR dues payable over 10 annual instalments till 2031.
The company is also likely to increase tariffs as it looks to replenish its coffers. It recently raised prices of two postpaid family plans in some circles.