Vodafone Idea Proposes Huge Price Hikes In Call And Data: Customers Brace For Impact!

Vodafone Idea, the second-largest telecom operator in India, want to increase the data price along with call charges and base price. The mobile data tariff of Vodafone IDea which currently hovers around ₹5 would be increased to ₹35 from April 2020 if the demands are accepted by TRAI.

Must Read

Google Wanted To Acquire Facebook But The Objective Was Quite Concerning!

Can you imagine how powerful Google would have been today if it had access to monstrous amount...

How Video Conferencing Services Are Changing Conference Calls

Video conferencing has become something of a norm during the COVID-19 crisis, but even before the virus...

Microsoft To Acquire TikTok In the US?

The rumours are making rounds that Microsoft may acquire TikTok to keep the popular short video sharing...

Vodafone Idea, the trouble hit loss-making telecom operator in India, is under massive pressure regarding complying with Supreme Court’s order to clear adjusted gross revenue (AGR) dues which amount to more than Rs 50,000 crores. Therefore, to pay off these dues, Vodafone Idea has recently put forward some demands across the Indian government. However, if approved, these demands will definitely make the telco’s customers very unhappy.

Vodafone Idea’s demands clearly show that they want the current fixed minimum tariffs for mobile data to be increase to Rs 35 per GB. This price point stands at stark contrast with that of the current price which is 7-8 times lower.

Advertisements

They have also demanded a 6 paise per-minute charge for calls along with a fixed monthly charge of Rs 50 to be put in place starting from 1st April 2020. This would enable them to pay off their statutory dues hence, making their business sustainable once again.

Source: Business Insider

At present, the current mobile internet prices range from Rs 4-5 per GB. Vodafone Idea’s current demands to raise the calling and mobile internet rates came immediately within three months after they had previously raised their prices up by a whopping 50 per cent.

According to official sources, Vodafone Idea has sought 15 years worth of time to clear their pending dues including a three-year temporary prohibition period on them paying any interest and penalty.

According to a news outlet, an official, under anonymity, who is directly linked with these developments said that the demands made by the trouble-hit telco is a huge problem for the government to fulfil at this moment.

Licence fee and spectrum usage charges are levied by the Indian government based on the revenue earned by these telecom companies.

Advertisements

As of right now, Vodafone Idea has managed to pay off only Rs 3,500 crores out the total Rs 53,000 crores as calculated and confirmed by the Department of Telecommunications (D.O.T)

Vodafone Idea Huge Price Hikes?

According to anonymous sources, the now merged Vodafone Idea telecommunications company, which has 332 million customers, believes that an increase in mobile call and data rates will help them generate the same level of revenue as Vodafone and Idea individually generated in the year 2015-16. It will take three years to get to that level after tariff hike for Vodafone Idea and hence it has sought three-year moratorium for payment of adjusted gross revenue dues.

Vodafone Idea has also written a letter to the telecom department of India expressing that they are unable to pay the AGR dues if it’s not backed by the government. The company also demanded the government to take urgent measures to fulfil its demands in this crisis-ridden sector which includes the implementation of floor pricing, reduction in levied charges as well as allowing staggered payment.

The letter clearly mentioned that Vodafone Idea is ‘not in a sound financial state’ as of right now. The current condition of the telco also begs us to question if they will be able to survive such an uphill battle against the government regarding these demands and turn out sustainable in the long run or if they will have to exit the Indian telecommunications market altogether. We will surely keep you posted on further developments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Will You Buy iPhone 12 Pro At US$20,500?

if you are suspecting any typo error here, you are highly mistaken! The price of iPhone 12...

Google Is Shutting Down Google Play Music

Google Play Music will soon be buried in Google's graveyard. The company has announced that by December the service will be completely...

The Lawsuit That Could Force Apple To Exit China Market

It seems like China is now turning up the heat and is ready to take some really hostile measures after being worn...

Global E-commerce Sales to Reach $3.9 Trillion in 2020 [REPORT]

As the coronavirus pandemic has lead healthcare authorities to discourage physical social contact as much as possible, the most popular mode of...

OYO Gets New CEO And Merger To Boost Its Business In Japan

The hospitality industry has been one of the worst-hit due to COVID-19. The pandemic left the sector heavily crippled and forced many...

Microsoft Confirms That Buying TikTok Is On The Cards!

Putting an end to all speculations Microsoft has confirmed that the company is actively exploring options to buy TikTok. The Redmond giant...

In-Depth: Dprime

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

More Articles Like This