New Delhi: Debt-ridden telecom operators Vodafone Idea and Bharti Airtel said Monday that they will raise mobile services rates from December 1 in the wake of ongoing financial stress.
“To ensure that its customers continue to enjoy world class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs effective December 1, 2019,” Vodafone Idea said in a statement. However, the company did not disclose the quantum of hike in tariff it is planning from December 1.
The company at present provides monthly mobile services at starting price of Rs 24 without data, and plans with data service starts from Rs 33 onward.
Vodafone Idea last week reported consolidated loss of Rs 50,921 crore – highest ever loss posted by any Indian corporate – for the second quarter ended September 30, on account of liability arising out of the Supreme Court order in the adjusted gross revenue case.
Airtel also said Monday said it will start raising rates for services in December to make business viable.
“The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments and therefore, extremely important that the industry remains viable to support the vision of Digital India,” the company said in a statement. “Accordingly, Airtel will appropriately increase price offerings in the month beginning December,” it added.
Bharti Airtel, which has been hit hard by the Supreme Court ruling on statutory dues, last week posted highest ever loss of Rs 23,045 crore in the three months ended September.
The company also said that it understands that telecom regulator Trai is likely to initiate a consultation for bringing rationality in pricing in the Indian mobile sector, which has been operating at prices that have been eroding its viability.
Agencies
