Vodafone Idea bites the bullet on tariff hike as firm struggles to pay dues

Cash-strapped Vodafone Idea (VI) has taken a lead in hiking tariffs by 6 to 8 per cent as it struggles to retain customers and clear its pending dues. However, the company has moved cautiously by raising the tariff only in limited circles such as Uttar Pradesh. While the hike comes into immediate effect, there has been no announcement.

In the post-earnings call in October, Vodafone Idea managing director Ravinder Takkar had said the company would not shy away from taking the first step in raising tariffs. Bharti Airtel Chairman Sunil Mittal had also said last week that there was an urgent need to increase rates.