Last Year in December, Vodafone Idea (now Vi) was the first to increase India's mobile tariffs. And now, Vi has hinted to raise the tariffs yet again, citing, the 'current price levels are unsustainable.' The Indian telecom sector's tariff war came with the entry of Jio which started offering cheap mobile data, voice, and other bundled services at predatory prices. Telecom Regulatory Authority of India (TRAI) is yet to set a floor price for the Indian Telecom Sector. Among the top three operators, Vi has the lowest ARPU at Rs 119, while Airtel has the highest.
While Jio is targeting more on subscriber addition, Airtel and Vi are focusing on higher ARPU. "If you look at the current pricing, there is something wrong with it. We have said before that we would not shy away from hiking prices, and we will be happy to be the first one to do so. We hope others in the industry will follow," Ravinder Takkar, the company's CEO, said.
He also added the industry should look at Rs 300 ARPU in the long run. Alongside Vodafone Idea CEO, Bharti Airtel CEO Gopal Vittal also stated that the "industry cannot continue to function at the current prices for voice and data services."
However, there is no timeline on when both Airtel and Vodafone Idea will raise the tariffs. As we saw the rise in price tariff in December last year, the next rise may be just around the corner. Starting next year, TRAI is expected to remove IUC charges completely and set a floor price for voice and data in the country.
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