Bharti Airtel and Vodafone Idea, two of the biggest telecom network operators in India have separately announced that they will be increasing mobile service rates from 1 December, 2019. The announcement comes at a time when the companies have posted loss.
However, neither Airtel nor Vodafone Idea have disclosed the quantum or details of the proposed tariff hike. We expect to get more details about in the coming weeks.
Recently, Airtel said its net loss was on account of exceptional charge pertaining to the provisioning of ₹28,450 crore towards the AGR dues, which included principal of ₹6,164 crore, interest of ₹12,219 crore, penalty of ₹3,760 crore, and interest on penalty of ₹6,307 crore.
On the other hand, Vodafone reported a consolidated loss of ₹50,921 crore – the highest ever loss posted by any Indian corporate – for the second quarter ended 30 September. The company said that the loss is on account of liability arising out of the Supreme Court order in the adjusted gross revenue case.
In a statement, Airtel said: “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.”
Vodafone Idea said in a statement: “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.”
