Network investments, low tariffs hurt industry health: Vodafone Idea

New Delhi: Network investment costs to provide for exploding data demand and unsustainably low tariffs are the reasons for poor financial health of the telecom operators in India, Vodafone Idea said in its annual report for last fiscal.

Despite improvement in average revenue per user (ARPU) as a result of December-19 price increase and continued migration of 2G/3G users to 4G, “tariffs are still unsustainably low despite offering much higher value compared to past, and thus Financial Year 2019-20 revenue remains lower compared to five years ago,” the company said in its report released Monday.