India Markets

Vodafone Idea to increase tariffs from 1 December, due to ‘financial stress’

Vodafone Idea on Monday announced it will increase mobile service rates from 1 December, 2019.

The announcement comes close on the heels of the telecom operator reporting a consolidated loss of ₹50,921 crore – the highest ever loss posted by any Indian corporate – for the second quarter ended 30 September, on account of liability arising out of the Supreme Court order in the adjusted gross revenue case.

“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.

The company, however, did not disclose the quantum or details of the proposed tariff hike.

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.

Vodafone Idea has around 300 million mobile subscribers.

Vodafone Idea stock on Monday advanced nearly 25% on the NSE over a possible government-led revival.

The sharp reversal in Vodafone’s stock price came after Finance Minister Nirmala Sitharaman said the government doesn’t want any telecom company to shut operations.

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