Vodafone Idea Rooting for Tariff Hikes from Airtel
- BySheetal Sidhu | September 2, 2021
Vodafone Idea (Vi) has been waiting for the telecom to go ahead with the tariff hikes. The telco wants to see its average revenue per user (ARPU) rising significantly so that it can recover slightly from the losses it has been through. Vi must be very happy with Airtel right now. Bharti Airtel is paving the way for Vodafone Idea to follow. If you don’t understand, let me add some perspective. Vi can’t alone increase tariffs. This is because if Jio and Airtel don’t raise prices, the subscribers of Vi will jump to the networks of the other operators looking at their cheaper priced plans.
Because of what I said above, it is very understandable that Vodafone Idea would be rooting for Bharti Airtel to go ahead with the tariff hikes. This will help both the operators financially by improving their ARPU. Mittal has already said that Airtel won’t shy away from raising tariffs. But the only question is when will that happen. If it happens too late, that would be very bad for Vodafone Idea. Vi wouldn’t even be thinking about the long-term right now. The third-largest telecom operator must be wondering about how it can survive the short-term debt onslaught that’s coming its way in the form of adjusted gross revenue dues and other statutory dues mixed with bank loans.
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