Vodafone Idea and Airtel will suitably increase the prices of its tariffs effective December 1, 2019, both companies said in separate statements.
New Delhi: Debt-ridden telecom operator Vodafone Idea on Monday said it will raise mobile services rates from December 1 in the wake of ongoing financial stress. Soon after this announcement, Bharti Airtel too said it will increase prices from December 2019.
The statement of Airtel read: "We understand that TRAI is likely to initiate a consultation for bringing rationality in pricing in the Indian mobile sector which has been operating at prices that have been eroding the viability of the sector."
The statement by Vodafone Idea stated: "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."
The company, however, did not disclose the range or details of the proposed tariff hike.
Vodafone Idea last week 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.
The Supreme Court last month ruled in favour of the government and directed telecom companies, including Vodafone Idea, to pay dues as demanded by the Department of Telecom.
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.
(With PTI inputs)
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Last Updated 18, Nov 2019, 8:11 PM