Mobile call, data to cost more as Vodafone-Idea, Airtel to hike rates from December

MUMBAI: Vodafone Idea and Bharti AirtelNSE 1.45 % said they would increase tariffs in December, the first price hike in more than three years that could help shore up revenue and operating income for the two lossmaking telecom companies but also cause some subscribers to shift to rival Reliance Jio Infocomm.

In separate statements on Monday, Vodafone Idea and Airtel cited the financial stress in the sector, the current low tariffs and the need to invest in networks to keep up with surging data demand as the reasons for the move. The companies have for some time been saying that higher prices and lower government levies were crucial to improving the health of the sector bogged down by huge debt and intense competition.