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Recently, Airtel and Vodafone Idea lost Rs 74,000 crore. Due to which both companies are facing financial disaster. Vodafone and Airtel have decided to increase their tariff plans. These expensive tariff plans will come into effect on December 1.
In a statement to Vodafone, "We have decided to increase our tariff prices from December 1, 2019, to ensure that our customers enjoy the world-class digital experience. However, Vodafone has not yet disclosed how much these new prices will be raised.
Shortly after Vodafone announced additional tariff plans, Airtel also announced an increase in its tariff plans. In a statement, Airtel said, "We understand that TRI will consult with Indian mobile sector to rationalize pricing and set new prices."
Telecom companies, Vodafone Idea and Indian Airtel are struggling against the financial crisis. In the second quarter report recently, the two companies suffered the largest loss of corporate history in the amount of Rs 74,000 crore. It is debatable that the company has taken this step. If the company cannot fight against this crisis then the existence of both companies could be at stake.
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.
Reliance Jio is offering unlimited voice calls in all it mobile services phone plan.
Promoter firm Vodafone, which holds majority stake of 45.39 per cent in Vodafone Idea, has said that the group will not infuse any further equity investment in the Indian telecom venture and reportedly similar stand has been taken by the Aditya Birla Group. This leaves the company with no other option but to support operation from internal resources.
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