Vodafone Idea or Vi plans to increase their rates by 15-20% by the end of 2020 or early 2021 to boost revenue, according to reports. Sources familiar with the matter told ET Telecom that the company is likely to raise tariffs even as telecom companies wait for the regulator to set minimum prices and that could happen as early as December. Analysts in the past have said that Vi needs a combination of rate hikes, government support and fundraising to survive.
“The ongoing consultations on the minimum price (for data rates) are not preventing anyone from raising their tariffs, but the timing must be right, but we can assure you that the decision on the tariff increase is not far off,” Vi said. MD Ravinder Takkar at the company’s second quarter meeting.
There it lost 8 million users in the July-September quarter according to reports and is likely to increase its rates by 15% but not all at once. Jio added 7 million subscribers compared to Airtel’s 14 million. Airtel is likely to follow suit as Airtel CEO Gopal Vittal said the company won’t be the first to implement the increases, but will do so soon after other companies make the change.
Airtel founder Sunil Mittal had previously stated that current rates are unsustainable and that users should be prepared for a rate hike. “Either you consume 1.6GB of capacity per month at this price or you are prepared to pay a lot more. We don’t want $ 50-60 (around Rs 3,700 Rs 4,400) like the US or Europe, but we certainly want $ 2 ( around Rs 160) for 16GB per month is not sustainable, ”Mittal said.
Mittal also said Airtel users will have to pay at least Rs 100, even if it’s for the base price. Currently, Airtel’s basic plans are priced at Rs 45. Mittal also called the 16GB data consumption for Rs 160 a tragedy. The three telecom companies Airtel, Vi and Jio increased their tariff rates in December 2019 for the first time since the entry of Reliance Jio Infocomm in 2016. Vodafone was the first to do so and raised their tariff rates by 14%.
According to a report, Vi is likely to increase tariffs by 15-20% in December 2020 or early 2021. Analysts in the past have said that Vi needs a combination of tariff increases, government support and fundraising to to survive.
- You could raise your rates by December 2020 or 2021 in an effort to increase your revenue.
- There MD Ravinder Takkar in the second quarter meeting had said that the ongoing consultations on the minimum price (for data rates) are not preventing anyone from raising their rates.
- Airtel is likely to follow suit as Airtel CEO Gopal Vittal said the company won’t be the first to implement the increases, but will do so soon after other companies make the change.