Telecom operator Vi (Vodafone Idea) is planning to increase its tariffs by 15-20 percent by the end of 2020 or early 2021 in a bid to increase its revenue.
According to sources who spoke to The Economic Times, the company is planning to increase tariffs while telcos wait for the regulator to increase the floor prices. This change may happen as soon as December.
The telco has lost nearly 8 million users in the July-September quarter as per reports and is likely to hike tariffs to 15 percent but not at once.
Its other rivals, Reliance Jio for instance, added 7 million subscribers which can be compared with Airtel that added 14 million subscribers.
Vi might not be the only telco to increase tariffs. Airtel is likely to follow suit as its Chief Executive Officer Gopal Vittal has said that the company will not be the first one to implement hikes but will do it soon after other companies bring the change, India Today reported.
On October 31, Vi's CEO Ravinder Takkar said the telecom major will not shy away from raising prices and setting a precedent for the industry.
"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 earlier.
(Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)
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