Tariffs at ‘unsustainable’ levels, industry needs price correction for continued investments: VIL

Telecom operator Vodafone Idea (VIL) has said telecom tariffs in India continue to remain at “unsustainable levels” and the industry needs “tariff correction” to support continued investments.

VIL has seen average revenue per user (ARPU) growth for five consecutive quarters now. Its average revenue or realisation per user at Rs 131 in Q2 FY23 was 19.5 per cent higher than the year-ago period, aided mostly by tariff hikes and subscriber upgrades.

ARPU for the September quarter was higher sequentially as well, when compared to Rs 128 in Q1 FY23.

“However, it is important to note that despite the price intervention made in the last one year, the tariffs in India continue to remain at unsustainable levels.