Cash-strapped Vodafone Idea (VI) has taken a lead in hiking tariffs by 6 to 8% as it struggles to retain customers and clear its pending dues. However, the company has moved cautiously by raising the tariff only in limited circles such as Uttar Pradesh. While the hike comes into immediate effect, there has been no announcement. In the post earnings call in October, Managing Director RavinderTakkar had said the company would not shy away from taking the first step in raising tariffs. BhartiAirtel Chairman Sunil Mittal had also said last week that there was an urgent need to increase rates.
The latest move, even if it is symbolic, is the first rate hike after the one announced end of 2019. The VodaIdea share price rose 2.45% to close at Rs 10.05 on BSE. On the news of tariff hike by VI, even BhartiAirtel’s stock went up 3.5% to close at Rs 479 on Tuesday. The tariff hike of Rs 50 has been effected under Vodafone Idea’s RED family pack plans which currently cost Rs. 598 and Rs.749, respectively. However, the rates for the remaining eight post paid plans remain unchanged.
Courtesyg: Google (photo)
