Vi CEO calls for faster mobile tariff hikes in India

Faster mobile tariff hikes are the need of the hour in India, said Vodafone Idea Chief Executive Officer Akshaya Moondra. Moondra, while speaking on an investor call after the company’s third-quarter results, said that telecom service providers in India may hike tariffs at a gap of nine months, given the country’s unique market conditions.

“In a normal scenario, the ideal time gap between two tariff hikes would be one year. However, in India, where the telecom industry is today… I would justify that a nine-month gap could also be acceptable. In a normal situation, 12 months is ideal for making any changes in tariffs. But in India, given the industry’s current state, faster tariff hikes are the need of the hour,” said Moondra.

It is worth noting that all private telecom service providers, including Reliance Jio, Bharti Airtel, and Vodafone Idea, increased their tariffs by up to 25% in July 2024. Following the tariff hike, all the telcos witnessed an improvement in their Average Revenue Per User (ARPU), a key metric that indicates the revenue a company generates on average from each individual user within a specific time period.

“The increase had positively impacted Average Revenue Per User (ARPU) and the company’s earnings. The effects of the tariff hike were evident in the company’s second and third-quarter results,” said Moondra.

Faster mobile tariff hikes are the need of the hour in India, said Vodafone Idea Chief Executive Officer Akshaya Moondra. Moondra, while speaking on an investor call after the company’s third-quarter results, said that telecom service providers in India may hike tariffs at a gap of nine months, given the country’s unique market conditions.

“In a normal scenario, the ideal time gap between two tariff hikes would be one year. However, in India, where the telecom industry is today… I would justify that a nine-month gap could also be acceptable. In a normal situation, 12 months is ideal for making any changes in tariffs. But in India, given the industry’s current state, faster tariff hikes are the need of the hour,” said Moondra.

It is worth noting that all private telecom service providers, including Reliance Jio, Bharti Airtel, and Vodafone Idea, increased their tariffs by up to 25% in July 2024. Following the tariff hike, all the telcos witnessed an improvement in their Average Revenue Per User (ARPU), a key metric that indicates the revenue a company generates on average from each individual user within a specific time period.

“The increase had positively impacted Average Revenue Per User (ARPU) and the company’s earnings. The effects of the tariff hike were evident in the company’s second and third-quarter results,” said Moondra. New Indian Express