Vodafone Idea CEO Says Industry ARPU Should Have been Rs 350 – Rs 400 Today

Takkar said that he is always willing to raise the tariffs and will be happy to lead another round of tariff hikes if it is the right thing for the business. Another round of tariff hikes is definitely going to come during the second half of 2022.

Highlights

  • Ravinder Takkar, CEO, Vodafone Idea (Vi) said recently that the industry average revenue per user (ARPU) should have been Rs 350-400 today as it was Rs 200-205 in 2016.
  • Vodafone Idea will not hesitate in raising tariffs, said Takkar.
  • Vodafone Idea got an investment of Rs 4,500 crore from the promoters.

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Vodafone Idea

Ravinder Takkar, CEO, Vodafone Idea (Vi), said recently that the industry average revenue per user (ARPU) should have been Rs 350-400 today as it was Rs 200-205 in 2016. According to Takkar, the wallet spending of consumers has shrunk about Rs 150, which is 50% to 60% lower than what it would have been in 2016.

Vodafone Idea will not hesitate in raising tariffs, said Takkar. The telco believes that in the next five years, the industry ARPU can rise significantly. Vi’s ARPU goals echo the same figures as Airtel’s. Vodafone Idea wants to reach Rs 200 levels in the short-term, then progress to Rs 250 and then to Rs 300 in the long-run, said Takkar as per a Livemint report. As of today, Vi’s ARPU stands at Rs 124, which is far behind Airtel and
Jio’s ARPU of Rs 178 and Rs 168.

Vi Will be Happy to Lead Another Round of Tariff Hikes

Takkar said that he is always willing to raise the tariffs and will be happy to lead another round of tariff hikes if it is the right thing for the business. Another round of tariff hikes is definitely going to come during the second half of 2022.

Vodafone Idea got an investment of Rs 4,500 crore from the promoters. Takkar said that it is very helpful for the company and sets the ball rolling for other investors to come in. The telco quashed the rumours of getting a Rs 20,000 crore investment from Amazon.

In a clarification to the Securities and Exchange Board of India (SEBI), Vi said that it had received no proposals from Amazon for any sort of investment. The telco’s CEO had earlier said that they are very close to raising Rs 20,000 crore, but it won’t happen until the time the government’s equity conversion process is completed. For the unaware, GoI (Government of India) will pick up an equity stake in Vi very soon against a part of the liabilities that the telco owes the centre.

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