Airtel, Vodafone Idea To Increase Tariff From December

Get ready to cough up a bigger bill for your mobile services starting December 1 as the country’s top telecom operators – Bharti Airtel and Vodafone Idea – have announced to increase the rates form next month.

“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,” The Sunil Mittal-founded firm said on Monday.

The company justified the move by saying that it has became necessary for the company to take such actions to maintain the viability of the company.

“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,” it added.

Vodafone Idea, the country’s biggest telco, also made a similar announcement.

“To ensure its customers continue to enjoy world class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs starting December 1, 2019,” the company said.

Though neither of the companies announced how much the prices would be hiked, industry watchers believe it could be around 25%.

It can be recalled that the last quarter financial results for both the operators were the worst in their history and combined, Airtel and Vodafone Idea posted a quarterly loss of around Rs 74,000 crore. Vodafone Idea alone had posted loss of Rs 50,921 crore.

At this pace , both the telcos opined that it will not be possible to sustain offering services at the same rate. There are also rumors that Vodafone Idea might shut shop in India.

In the wake of such dire situations both the telcos have requested the Department of Telecommunication to offer some sort of financial relief. Though the government has hinted of some remedial measures to assist the telcos, a final plan is not yet announced.

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