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Home » Business » After Airtel, Vodafone Idea Raises Mobile Call, Data Rates By 18-25%


After Airtel, Vodafone Idea Raises Mobile Call, Data Rates By 18-25%

Vodafone Idea Ltd (VIL) has increased the minimum value of recharge by 25.31 per cent for 28 days to Rs 99 from Rs 79.

Image for representation. ( Photo: PTI)

New Delhi: Debt-ridden telecom operator Vodafone Idea on Tuesday announced an increase in mobile call and data tariffs across plans by 18-25 per cent for prepaid customers, with effect from November 25.

The development comes a day after Bharti Airtel announced a similar level of tariff hike in mobile prepaid users.

While analysts believe Jio will also increase the mobile rates, the Mukesh Ambani-led company has not opened its card yet.

Vodafone Idea Ltd (VIL) has increased the minimum value of recharge by 25.31 per cent for 28 days to Rs 99 from Rs 79.

With this, VIL customers have to pay a minimum of Rs 99 for availing of mobile services for about a month.

In the popular unlimited category plans, Vodafone Idea has hiked the rates in the range of 20-23 per cent.

The lowest plan bundled with a per-day 1 GB data limit with a 28-day validity will cost Rs 269 from November 25 onwards. Currently, it costs Rs 219.

Further, the price of the 84-day validity plan with 1.5 GB per day data limit will cost Rs 719 instead of Rs 599.

The 365-day plan with 1.5 GB per day data limit will go up by 20.8 per cent to Rs 2,899. Currently, it is priced at Rs 2,399. The company has also increased the price of low-value data top-up by about 20 per cent. The Rs 1,499 annual prepaid plan, which comes with a fixed data limit of 24 GB at 4G speed, will go by about 20 per cent to Rs 1,799 from November 25.

The company has increased data top-up plans price in the range of 18-21 per cent. The 3 GB and 12 GB data top-up plans’ prices will now be at Rs 58 and 118, respectively, instead of Rs 48 and Rs 98 currently.

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The data top-up prices of 50 GB and 100 GB will now be Rs 298 and Rs 418, respectively, instead of Rs 251 and Rs 351 currently.

The company has announced an increase in tariff across 16 mobile services plans.

The tariff hike from VIL comes despite it continuously losing its customers.

VIL had started making some tariff revisions in the July-September 2021 quarter but the company made a big correction now with Bharti Airtel taking lead.

Analysts in September had said that even after the government relief package, VIL will need to raise tariffs for sustaining its business in the country.

The government has given a 4-year moratorium to telecom players to pay their spectrum and adjusted gross revenue-related dues, with an option to convert the interest payable arising out of deferment of payments into equity.

Credit Suisse in a report had said that despite the moratorium and equity conversion of interest during the period, VIL will need an ARPU (average revenue per user) of Rs 240 by the financial year 2026 to meet Rs 33,000 crore of annual spectrum payments and AGR dues, which will need to be repaid over the remaining tenure.

VIL had posted a narrowing of its consolidated loss to Rs 7,144.6 crore and a decline in revenue of about 13 per cent to Rs 9,406.4 crore for the second quarter ended September 30, 2021.

VIL’s total gross debt (excluding lease liabilities and including interest accrued but not due) as of September 30, 2021, stood at Rs 1,94,780 crore, comprising deferred spectrum payment obligations of Rs 1,08,610 crore, an AGR liability of Rs 63,400 crore that are due to the government and debt from banks and financial institutions of Rs 22,770 crore.

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