You are here: Home » Companies » News
Business Standard

Will not shy away from tariff hike: Vodafone Idea CEO Ravinder Takkar

While the telecom company's second-quarter loss narrowed to Rs 7,218 crore, its operational performance was weaker compared to its peers.

Topics
Vodafone Idea | Tariff hike | Telecom companies

Aneesh Phadnis  |  Mumbai 

The response of the government has been consistent. They said they want this sector to be healthy, it is a very strategic sector, too important for the country. They have said they want to see 3 private players and one public sector player in this se
Vodafone Idea MD Ravinder Takkar

will not shy away from taking the lead in hiking mobile tariffs, the company management said in its post-result conference call on Friday. The financially stressed telco also set a three-month timeline to complete its proposed fundraising by early 2021.

While the telecom company’s second-quarter loss narrowed to Rs 7,218 crore, its operational performance was weaker compared to its peers. The pending Rs 58,000-crore (AGR) dues and the refinancing of bank guarantees remain a major concern.

Chief financial officer Akshaya Moondra said so far the company had received Rs 2,000 crore from Vodafone Plc and expected to get another Rs 6,400 crore from the UK parent company in indemnity payments under the 2017 merger agreement. These receipts from Vodafone Plc are linked to AGR dues, for which the next instalment will be due in March 2022.

have maintained that the current tariff levels are unsustainable but have not increased rates. On Friday, managing director Ravinder Takkar said the company would not shy away from taking the first step. “We have taken it before and we can take it again,” Takkar said and added that there were fairly strong indications that competitors would follow suit. In the post-result conference call, Bharti Airtel had also expressed its intention to raise tariffs soon.

chart


In the first phase, the average revenue per user (ARPU) per month of needs to increase to at least Rs 200, Takkar said.

A will also help generate cash and cut down losses. While the company is focusing on 4G expansion and network improvements, its average revenue per user (ARPU) is Rs 119 whereas that of Airtel is Rs 162. On fund-raising, the company said the plans were on track.

In September, the company's board had approved plans to raise up to Rs 25,000 crore through a mix of debt and equity.

"We are in discussion with interested parties. Engagements are ongoing and progressing well," Takkar added.

Responding to a query on impact of Reliance Jio’s post-paid plans, Takkar said these were early days and that there had been little or no impact on its existing post-paid subscriber base. "Post-paid subscribers tend to be sticky and less price sensitive. This has been a factor for a long time,” he added.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 30 2020. 20:04 IST
RECOMMENDED FOR YOU
.