NEW DELHI: Telecom operatorsVodafone Ideaand Bharti Airtel on Monday said that they will raise mobile services rates in to make business viable.
“To ensure that its customers continue to enjoy world class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs effective December 1, 2019, “Vodafone Idea said in a statement.
Vodafone’s India ops headed for liquidation: Global CEO
Vodafone-Idea, India’s second-largest telecom company, may be headed for liquidation unless the govt eases off on demands for mobile spectrum fees, said Nick Read, CEO. Read said firm’s future in India could be in doubt unless the govt stopped hitting operators with higher taxes and charges, after the SC asked operators to pay over Rs 92 K crore in past dues.
The company, however, did not disclose the range or details of the proposed tariff hike.
Hours later, Bharti Airtel also announced that it will raise mobile service rates from December.
The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments and therefore, extremely important that the industry remains viable to support the vision of Digital India, it said.
“Accordingly, Airtel will appropriately increase price offerings in the month beginning December,” the company said in a statement.
Combined Q2 loss of Rs 74, (crore for Vodafone, Airtel)
The battered Indian telecom sector is now bleeding heavily. Vodafone-Idea and Bharti Airtel, once among the country most aspirational and profitable companies, on Thursday reported record quarterly losses cumulatively standing at Rs 74, 000 crore.
Both Vodafone Idea and Bharti Airtel reported a record quarterly loss cumulatively standing at Rs 74, 000 crore.
While, Vodafone Idea reported consolidated loss of Rs 50, 921 crore – highest ever loss posted by any Indian corporate – for the second quarter ended September 30, on account of liability arising out of the Supreme Court order in the adjusted gross revenue case, Bharti Airtel reported a loss of Rs 23, 045 crore for the said period.
The Supreme Court last month ruled in favor of the government and directed telecom companies, including Vodafone Idea and Bharti Airtel, to pay dues as demanded by the department of telecom.
Vodafone Idea posts highest ever quarterly loss of Rs 50, 921 crore in Q2
Hit hard by the unpaid statutory dues, telecom operator Vodafone Idea on Thursday posted a colossal Rs 50, 921 crore loss for the second quarter ended September 30, and said it is in the process of filing a review petition on the adjusted gross revenue matter. This is the highest ever quarterly loss posted by any Indian company in recent memory.
Vodafone Idea said that now its ability to continue business will depend on reliefs sought from the government and positive outcome of the legal option it has.
“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 statement said.