Vodafone Idea, Airtel To Hike Tariffs From December Amid Sector Stress

Airtel will appropriately increase price offerings in the month beginning December," Bharti Airtel said in a press release.

Vodafone Idea, Airtel To Hike Tariffs From December Amid Sector Stress

Airtel and Vodafone Idea posted a combined loss of Rs 74,000 crore in Q2 of current financial year.

Vodafone Idea and Bharti Airtel said on Monday that they will increase their tariffs from December 1. The development comes days after both the companies posted record losses in the September quarter. "The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments. It is, therefore, extremely important that the industry remains viable to support the vision of Digital India. Accordingly, Airtel will appropriately increase price offerings in the month beginning December," Bharti Airtel said in a press release.

"While continuing to provide affordable tariffs to customers, it would balance the needs of the company to remain viable and thereby continue to invest in the much needed digital infrastructure and maintain the quality standards required by our customers," Bharti Airtel added.

The country's largest telecom operator by subscriber base - Vodafone Idea - said it will increase tariffs from December, news agency IANS reported. Vodafone Idea said that it will "suitably increase the prices of its tariffs" from December 1, according to the IANS report.

"The acute financial stress in the telecom sector has been acknowledged by all stakeholders and a high level Committee of Secretaries (CoS) headed by the Cabinet Secretary is looking into providing appropriate relief," IANS quoted Vodafone Idea as saying.

Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in second quarter of current financial year by providing for the adjusted gross revenue (AGR) pending dues. Vodafone had earlier this month said its ability to continue as a going concern is dependent on obtaining government relief.

Highlights

  • Vodafone Idea, Bharti Airtel posted record losses in September quarter
  • Combined losses by telecom service majors stood at Rs 74,000 crore in Q2
  • Companies in India's telecom sector are reeling under huge piles of debt
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