Airtel, Vodafone customer? Big setback! You will have to pay MORE from December 1
Two of country's largest telecom operators - Bharti Airtel and Vodafone Idea - have decided to hike tariffs from December 1, days after posting historic losses on account of provisioning for the AGR pending dues.
Two of country's largest telecom operators - Bharti Airtel and Vodafone Idea - have decided to hike tariffs from December 1, days after posting historic losses on account of provisioning for the AGR pending dues. Both the telcos announced on Monday that new rates will be available from December 1. However, they haven't announced the new rates, saying that the quantum of hike will be worked out between now and December 1. Interestingly, both companies announced the tariff hike within a few minutes of each other.
"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," Bharti Airtel said in a statement. "Accordingly, Airtel will appropriately increase price offerings in the month beginning December," it added.
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Vodafone Idea had also noted that 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. Vodafone Idea Ltd had said that it would "suitably increase the prices of its tariffs" effective from December 1.
The latest tarrif hike has not only become inevitable but a must-implement survival strategy. Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in Q2 due to provisioning for AGR pending dues. These losses have put a question mark over the sustainability of these companies and Vodafone has even hinted at not being able to remain as a going concern if relief does not come for the sector.
Last month, Reliance Jio had also implemented a charge of 6 paise a minute for making calls to any non-Jio number after Trai floated a consultation paper on seeking deferral of the zero IUC regime citing non-symmetry traffic. This rate was applied after Jio offered free voice calls for almost three years.