Tariff Hike Might Not Help Telecom Sector, Says Vodafone Idea

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Even though Vodafone-Idea has increased tariffs to improve the situation, the telecom operator believes that it will not increase its ARPU. This development comes soon after the telecom operator announced its Q1 F22 performance result, where it posted a loss.

 
 Tariff Hike Might Not Help Telecom Sector, Says Vodafone Idea

Vodafone Group And ABG Will Support Vodafone-Idea

Besides, the company announced that Kumar Mangalam Birla and Vodafone Group will continue to support the merged entity. The company also said that it is active in discussions with investors for raising funds.

"While these tariff interventions are steps in the right direction and will help in improving ARPU, such changes are not material enough to solve the structural issues that the industry is facing," Vodafone Idea CEO RavinderTakkar said.

He said that the company is also in discussion with the regulator on floor pricing as it is important to improve the overall situation of the sector."As mentioned by us, time and again, tariff hike remains a critical factor to revive the sector, and pricing structure has to change where operators have the ability to charge customers for incremental usage," he pointed out.

Vodafone-Idea Plans To Launch Music Streaming Service

Apart from increasing prices, Vodafone-Idea is planning to launch streaming services in India. The company is expected to join hands with a content provider for the services. The services will be available for prepaid and postpaid users. Besides, the services are likely to provide a personalized experience to Vodafone-Idea users.

The company plans to launch a music streaming service in the country at that time when it is looking for Government support to run its operations smoothly. On the other hand, the Government wants its promoters such as Aditya Birla Group and Vodafone Group to infuse some equity.

 

Notably, the Department of Telecommunication is preparing for a package for the telecom sector so that all telecom operators can work. In fact, the telecom ministry is likely to meet officials from Vodafone-Idea to know their plans as DoT does not want to announce a financial crisis.

The DoT is preparing a relief package for all telcos, but without getting assurance from telecom operators, it seems it would be difficult for the ministry to come up with new reforms.

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