Tuesday , September 29 2020
Home / india / Voda Idea will raise tariffs starting December 1, citing 'acute financial pressure'

Voda Idea will raise tariffs starting December 1, citing 'acute financial pressure'



[ad_1]

Vodafone's idea on Monday announced it would increase cellular service tariffs starting December 1, 2019.

Announcements approaching the heels of telecommunications operators reporting consolidated losses 50,921 crore – the highest loss ever posted by any Indian company – for the second quarter ended September 30, due to liability arising from a Supreme Court order for adjusted gross income cases.

"To ensure that its customers continue to enjoy world-class digital experience, Vodafone Idea will appropriately increase its tariff rates effective December 1, 2019," Vodafone Idea said in a statement.

The company, however, did not disclose quantum or details of the proposed tariff increase.

Vodafone Idea said that now its ability to continue business will depend on the assistance requested from the government and the positive results of its legal options.

"The acute financial pressure in the telecommunications sector has been recognized by all stakeholders and the high level Secretary Committee (CoS) headed by the Cabinet Secretary is seeking appropriate assistance," the statement said.

Vodafone Idea has around 300 million cellular customers.

Vodafone Idea shares on Monday rose nearly 25% on the NSE over the possibility of a government-led revival.

The sharp reversal in Vodafone's share price came after Finance Minister Nirmala Sitharaman said the government did not want telecommunications companies to close their operations.

Vodafone's idea closed 24.66% higher on 4.55 shares in NSE.

With input from PTI

[ad_2]
Source link