Tariff hike may not rescue Vodafone Idea, Bharti Airtel: SBICap

NEW DELHI: The government’s intervention will be needed even in a scenario when older incumbents increase the voice and data tariff by 15%, SBICap Securities in a finding Tuesday said.

“Government intervention (relief measures) would still be needed to offset the cash burn of Vodafone-Idea despite a potential 15% tariff hike,” it said in a statement.

Earlier on Monday, the two telecom carriers— Vodafone Idea and Bharti Airtel citing financial stress in the sector said that investments in networks to keep up with surging data demand as one of the core reasons behind the move starting December 1.