Airtel and Vodafone Idea posted a combined loss of Rs 74,000 crore in Q2 of current financial year.
Vodafone Idea and Bharti Airtel on Monday said that they will increase tariffs of their mobile offerings starting December 1. The development comes days after both the companies posted record losses in September quarter. “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 press release.
“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,” Bharti Airtel added.
The country’s largest telecom operator by subscriber base – Vodafone Idea – also said that it will increase tariffs from December, news agency IANS reported. Vodafone Idea said that it will “suitably increase the prices of its tariffs” from December 1, IANS report said.
“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,” IANS quoted Vodafone Idea as saying.
Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in second quarter of current financial year by providing for the adjusted gross revenue (AGR) pending dues. Vodafone had earlier this month hinted at not being able to remain as a going concern if relief does not come for the sector.