On Monday, the CEO of Vodafone Idea (Vi), Ravinder Takkar, said tariff hikes are the right direction to go in, but it is not enough to help with the average revenue per user (ARPU) gain. Vi needs more than that to survive. Takkar said that bringing a floor price for the industry is really important to help the cash-strapped telcos. As per a PTI report, Takkar said that Vodafone Idea is still actively looking for an outside investor and is also in talks with some of the potential ones to raise additional funds.
Vodafone Idea CEO Says Tariff Hike Are Not Material Enough
In reference to the tariff changes that the telco made recently, which includes the entry-level corporate postpaid plans, among other things, Takkar said that these small tweaks to the tariffs aren’t enough to help with sufficient ARPU gain. Vi CEO believes that tariff hikes are not “material enough” to make an impact. Takkar said that the presence of floor price is the right way to go.
As per the report, Vodafone Idea is in continuous discussion with the sector regulator on floor pricing.
Vodafone Idea is on a roller coaster right now that’s only going down. In its current condition, there’s no way the telco would be able to pay all of its dues comfortably that will start ringing the doors of the company from December 2021.
The concept of a floor price is a little scary. While it is in line with the telcos’ future in India, it takes away the power from the hands of the customers. The telcos’ will be able to command significant money from their customers regardless of whether the networks are good or not. The company’s future looks very grim as of now. Hopefully, things will change for Vodafone Idea soon, and its fans won’t have to switch companies looking for network services. The telco has filed a review petition for the adjusted gross revenue (AGR) dues decision given by the Supreme Court.