Bharti Airtel and Vodafone Idea are said to increase their tariffs from December 1 for the first time in more than a decade. The companies announced the tariff hike within a few minutes of each other and did not specify the quantum of hikes.
Vodafone Idea “will continue to actively invest in making its network future-fit by embedding new-age technologies and launching new products/services to cater to the evolving needs of its over 300 million customers”, the firm said in a statement on Monday.
Moreover, Vodafone 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.
“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 statement.
Both the companies had posted a combined loss of Rs. 74,000 crore in Q2 following provisioning for the AGR pending dues. Further, the government panel will look into the demand of telecom companies for deferment of spectrum auction payment dues for FY21 and FY22.