Vodafone Idea Pushes for Tariff Hikes Amid Subscriber Fluctuations

Vodafone Idea's CEO Akshaya Moondra advocates for further tariff hikes, suggesting that subscribers who use more data should pay more. Despite a recent loss of subscribers to BSNL, the company sees improvement in customer retention. Vodafone aims to enhance network capabilities amidst pressures to maintain affordable connectivity.

Vodafone Idea is calling for additional tariff hikes, arguing that heavy data users should contribute more to industry returns and ensure broad connectivity. CEO Akshaya Moondra highlighted this strategy during the company's earnings call for the second quarter ending September 2024.

The firm, facing significant financial pressure, reported its first-quarter revenue growth following tariff increases in July. The average revenue per user rose by 7.8% to Rs 166, although it remains below that of competitors like Reliance Jio and Airtel.

Despite challenges, Vodafone Idea plans significant investment to upgrade its 4G and 5G capabilities, committing approximately Rs 10,000 crore this fiscal year. The company is keen on recovering from subscriber losses and enhancing customer experience as government-run BSNL ramps up its 4G offerings by mid-next year.

(With inputs from agencies.)