Operational challenges remain, tariff hikes needed: Vodafone Idea

MUMBAI: Cash-strapped Vodafone Idea (VIL) said that incremental tariff hikes are crucial to improving industry health as the sector operates at unsustainably low prices and average revenue per user (ARPU) remains lower than historical trends.

“While the operating challenges remain, the increasing digital penetration, increasing content consumption, especially through video and social media usage and increasing e-commerce, is driving strong demand for high-speed mobile broadband connectivity for internet,” outgoing chairman Himanshu Kapania said in his address in the annual report released Sunday.

He further said that post successful completion of network integration exercise and realization of merger synergies, the telco had undertaken a cost optimization exercise and realized 90% of the targeted Rs 4000 crore annualized opex savings on a run rate basis in FY22.