The private telecom companies in the country has announced that they will be increasing their tarrifs from December 1. The mobile service providers in the country Vodafone Idea and Bharati Airtel has decided to increase their tariff from the coming month to face the financial crisis that the companies are facing. The companies has faced historic losses on account of provisioning for the AGR pending dues.
Both the companies , however, did not announce the quantum of hike that is expected to be worked out between now and December 1.
“The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments. It is, therefore, extremely important that the industry remains viable to support the vision of Digital India. Accordingly, Airtel will appropriately increase price offerings in the month beginning December,” Bharti Airtel said in a statement.
Vodafone Idea Ltd had said that it would “suitably increase the prices of its tariffs” effective from December 1.
Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in Quarter 2 by provisioning for the AGR pending dues. Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.