Vodafone Idea’s survival doesn’t depend on tariff hike alone: Axis Securities

It is going to be a very interesting game to see how the whole pricing dilemma plays out, says Naveen Kulkarni, Chief Investment Officer.

What is stopping telecom companies from considering a fat price hike? Kumar Mangalam Birla has said that ARPUs will not sustain, Mukesh Ambani has said that the voice business and 2G business should die down but nobody is biting the bullet.
From a mobility perspective price hike is inevitable. It is bound to happen. Right now, the situation depends on how Vodafone Idea plays the market from here on because there are multiple factors which are at play right now. What is the kind of funding that they are looking at? What is the market share which is needed for them to sustain the business and of course eventually the ARPU?