Maria Montero

Vodafone Idea increase rates as of December 1 due to financial stress

Vodafone Idea to increase the rate from December 1: the signage for Vodafone Group Plc is shown outside a Vodafone India Ltd. store in Mumbai. (Stock Photo: Bloomberg)

The indebted telecommunications operator Vodafone Idea announced today that it will increase mobile service rates as of December 1, 2019. However, Vodafone Idea Limited (VIL) said the decision comes at the rate of "acute financial stress in the sector. of telecommunications ". I did not mention the details of the proposed tariff increase.

"To ensure that its customers continue to enjoy world-class digital experiences, Vodafone Idea properly increase the prices of their rates from December 1, 2019," Vodafone Idea said in a statement.

"VIL will continue to invest actively so that its network adapts to the future by incorporating new era technologies and launching new products / services to meet the changing needs of its more than 300 million customers," he added.

Vodafone Idea also said it is rapidly expanding both its coverage and its capacity and that it is on its way to offer 4G services to one billion Indian citizens by March 2020.

"The acute financial stress in the telecommunications sector has been recognized by all stakeholders and a Committee of High Level Secretaries (CoS) headed by the Cabinet Secretary is seeking to provide adequate relief," said Vodafone Idea.

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Previously, Vodafone Idea recorded a net loss of Rs 50,922 crore for the second quarter, which is the highest net loss recorded by a company in India. The Supreme Court decision on adjusted gross income (AGR) also hit Vodafone Idea with a charge of Rs 25,680 million. Vodafone had said: "It should be noted that our ability to continue as a going concern depends on obtaining relief from the Government and the positive outcome of the proposed legal remedy."