Previously, Vodafone Idea (VI) had lost nearly two million subscribers after raising its prices. Read the company’s official statement regarding the price increase.
“We would anticipate that it’s possible that there will be another price increase in 2022, but eventually the price increase will happen,” said Takkar. “The previous one was almost two years earlier, which I believe is a bit lengthy.
We certainly expect less than two years from now, but in 2022 we’ll have to see how quickly these prices are embedded. Probably, it could be 2023 as well.”
Vodafone Idea mobile tariff Price hike
The telecom firm has already lost almost two million customers since it increased prices. It was just last week that Vodafone announced the widening of its consolidated loss to Rs 7,230.9 crore in the third quarter of the fiscal year 2021.
In addition, Vodafone Idea is facing losses worth Rs 4,532.1 billion throughout the period of April-December 2020.
The telecom firm’s MD and CEO Balesh Sharma said that the company is expecting a price hike in 2022, but it could be as late as 2023.
He made this statement while addressing analysts after announcing the results for the third quarter of the fiscal year 2021.
“We would anticipate that it’s possible that there will be another price increase in 2022, but eventually the price increase will happen,” said Takkar. “The previous one was almost two years earlier, which I believe is a bit lengthy.
We certainly expect less than two years from now, but in 2022 we’ll have to see how quickly these prices are embedded. Probably, it could be 2023 as well.”
According to the CEO, there is a high possibility of another price hike in 2022. However, it could take even longer for the prices to be increased.
This news comes after Vodafone Idea announced losses worth Rs. 23,830 crores in the third quarter of the fiscal year 2021.
VIL’s net debt, excluding lease liabilities and interest, accrued but not payable, as of December 31 on 2021 stood at Rs 1,98,980 billion.
The government will hold a 35.8% stake in VIL after the company compensates for the interest on its debts by paying Rs 16,000 crore through special shares.
In November 2021, Vodafone Idea, a debt-ridden telecom service provider, announced that the cost of mobile calls and data across plans would rise by 20-25%.
According to a statement issued on November 25th, the higher rates have been in force since then.
For 28 days, Vodafone Idea has increased the minimum recharge amount by Rs. 11 to Rs. 149 and the daily data limit has been reduced from 100 MB to 50 MB.
The telecom operator said that it is compensating for the interest on its debts by paying Rs 16,000 crore through special shares.
This will give the government a 35.84% stake in VIL after the company pays off its interests. That’s the reason Vodafone’s idea tariff hike will increase.
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