Vodafone Idea Chief Executive Officer (CEO) Ravinder Takkar said the telecom significant won’t avoid raising costs and starting a trend for the industry.
In a post-income call with examiners, Takkar said the current price levels for voice and data services are unsustainable, as per a Mint report.
As indicated by Takkar, the sector requires a normal income for each client (ARPU) of Rs 200 in the short run and Rs 300 in the long run.
“If you look at the current pricing, there is something wrong with it…We have said before that we will 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,” Takkar said, as quoted by the paper.
The costs of voice and data services were previously brought up in December 2019, the report said.
Vodafone Idea revealed a mixed ARPU of Rs 119 in Q2FY21, higher than Rs 104 detailed in a similar period a year ago.
Bharti Airtel CEO Gopal Vittal additionally recently said the current rates for voice and data services are unsustainable.
Vodafone Group Plc is required to pay Rs 6,400 crore to clear the adjusted gross revenue (AGR) dues, Vodafone Idea CFO Akshaya Moondra said as cited by Mint. The telecom significant actually owes more than Rs 50,000 crore to the Indian government as AGR dues.
“The cumulative amount paid by us till date exceeds 10 percent of the total liability and accordingly, we believe, the next instalment would be payable only by March 31, 2022,” the company said on October 29.
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