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Vodafone Idea consolidating circle ops into cluster-based model

Vodafone Idea has undertaken operational revamp moving from a circle-based operating model to cluster-based approach to revv up pan-India presence and 4G coverage, as the telecom major eyes a stronger competitive positioning in the telecom market through a leaner and more agile structure, multiple sources said.

The circles have been bunched into clusters, 10 in all, for operational purposes, the sources said adding that this renewed commitment to the market is also expected to put to rest speculation around the company’s future, sending out strong message that Vodafone Idea is moving to a higher gear to remain competitive in the market.

The massive exercise, which entails consolidation of operations to 10 clusters, will lead to a sharper focus on business, one of the sources said.

These cluster are Punjab, Haryana, Himachal Pradesh, J&K, Ladakh; Delhi and Rajasthan; UP East and UP West; Assam and North East, Kolkata and rest of Bengal, Odisha, Bihar and Jharkhand; Karnataka, Andhra Pradesh and Telangana; Kerala and Tamil Nadu; Madhya Pradesh and Chattisgarh; Gujarat; Mumbai; and Maharashtra and Goa.

It is learnt that functions and enterprise business are being verticalised as part of the exercise, for greater efficiencies. Sources privy to the development said the new operating model will mark a jump in efficiency leading to stronger competitive positioning for Vodafone Idea in the marketplace.

“Vodafone Idea is consolidating its circle operations, to improve efficiency, as it nears the completion of its mammoth integration exercise following Vodafone-Idea merger in September 2018. With this, the company has now nearly doubled its 4G coverage reaching one billion Indians across all states,” the source said.

The company had earlier said it would complete the network integration exercise by June 2020 and the sources said that VIL is on track to achieve the target.

“Since the merger less than two years ago, VIL has focussed on de-duplication of operations to simplify customer journey and make it a more efficient operator,” another source added.

An internal announcement about the circle consolidation is scheduled to be made on Tuesday, the source added.

“The company is confident that it has a rich talent pipeline and will fill all new roles internally. In the new structure there will be bigger and consolidated roles that will afford opportunities for growth to a large number of internal resources,” said another source.

Over the last 12-18 months most vacancies, including some senior positions, have been filled internally through promotions. Industry watchers said Vodafone Idea met customer requirements for data and voice, during the lockdown triggered by the coronavirus pandemic.

—Money Control

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