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Vodafone Idea to begin cost-cutting

3 Aug 2018

Vodafone India and Idea Cellular are expected to complete the merger of their two businesses – creating ‘Vodafone Idea’ – from next week, following which the operator has lined up a number of cost-cutting measures to be implemented as soon as possible, the Economic Times reports, citing people familiar with the matter. Top of the list of priorities are the rationalisation and optimisation of the cellcos’ tower infrastructure, distribution networks and a reduction in their advertising and marketing spending. A source aware of the developments was quoted as saying: ‘Substantial cost and capex synergies will be unlocked at earliest. As network-related costs are the highest in the telecom sector, maximum synergies will be derived from its optimisation. IT integration and rationalisation of real estate, as well as operations, too, will add to the savings.’

India, Vi (Vodafone Idea Limited, VIL), Vodafone India

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