Vodafone-Idea for frequent tariff hikes

Struggling telecom operator Vodafone Idea Ltd says the industry needs to raise tariffs at regular intervals as the sector still operates at unsustainably low prices. Revisions will allow the company to generate reasonable returns and support future investments.

The joint venture of Aditya Birla Group and Vodafone Group, which last year got a fresh lifeline after the government extended a relief package to the sector, said per user revenue remains lower than historic trends. All three private telecom operators — Reliance Jio, Bharti Airtel and Vodafone-Idea Ltd (VIL) — last year raised charges for data, arresting average revenue per user (ARPU) declines.

Despite this, “the industry still operates on unsustainably low tariffs”, Vodafone Idea said in its latest annual report. “India continues to have the lowest tariffs globally, while the proliferation of unlimited data bundles have led to India having one of the highest data usage (per subscriber) in the world,” it said.