Tariffs unsustainable, correction needed to support continued investments: Vodafone

Telecom operator Vodafone Idea (VIL) has said that telecom tariffs in India continue to remain at “unsustainable levels” and the industry needs “tariff correction” to support continued investments. 

VIL has seen average revenue per user (ARPU) growth for five consecutive quarters now. Its average revenue or realisation per user at Rs 131 in Q2 FY23 was 19.5 per cent higher than the revenue in the year-ago period, aided mostly by tariff hikes and subscriber upgrades. 

ARPU for the September quarter was higher sequentially as well when compared to Rs 128 in Q1 FY23. 

“However, it is important to note that despite the price intervention made in the last one year, the tariffs in India continue to remain at unsustainable levels. And we believe that industry needs further tariff correction to support the continued investments going forward,” Vodafone Idea CEO Akshaya Moondra said during the company’s analysts’ call on Q2 FY23 earnings on Friday. 

Over the last one year, the company had taken several tariff interventions, including for entry-level plans, he said, adding that VIL continued to focus on getting more customers on 4G and unlimited plans. 

Citing the previews of digital and futuristic 5G use cases showcased by the company at the recently-held India Mobile Congress, Mr Moondra said: “We are ready for the next journey of 5G technology, where the connected world with limitless digital solutions will soon be (the) new norm, and we will be playing a vital role in the same.” 

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