Vodafone-Idea, Bharti Airtel to increase tariff from next month; details inside

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Vodafone-idea and Bharti Airtel are looking for a new round of tariff hikes from the next month. According to the reports published in News 18, both telecom companies are considering up to 10 per cent hike in the current calling plans and data packs. The new plan is expected to be implemented in September or October 2020. The officials of these telecom companies revealed that the companies may begin with a hike of 2-3 per cent, then they may increase the price as per the response. Earlier, the companies increased tariffs up to 10 per cent in December 2019.

As per the reports, a continuous hike in telecom plans is a result of massive AGR (Adjusted Gross Revenue) dues that have been imposed on these telecom companies by the government of India. Earlier, telecom companies filed a fresh appeal in the Supreme Court to seek relaxation in AGR, however, the decision is yet to be taken. According to the reports, both Vodafone-Idea and Airtel have asked the Supreme Court to grant a 20-year period to pay claimed dues.

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"We believe a tariff hike will be necessary for long term sustainable growth. However, before we finalise the details and pass it on to customers, we are awaiting the Supreme Court verdict on the staggered payment of Adjusted Gross Revenue (AGR) dues. In the best-case scenario, we are prepared for 15 years versus the 20 that the department of telecom had sought. But even in that scenario, we will need a tariff hike to improve ARPUs in the long term. Add to that in the absence of a decision on floor pricing, a tariff hike will be needed," CNBC TV 18 quoted an official as saying.

Posted By: Srishti Goel

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