Vodafone Idea may soon serve its customers with bad news, here's what the company is planning

Vodafone Idea customers could soon face higher mobile tariffs, as the company is considering another price increase. A senior official from Vodafone Idea Limited recently suggested that customers who use more data should pay higher rates for the services they use. The official argued that this would help ensure a fair return for the industry and guarantee that connectivity reaches all sections of society.

The Indian wireless sector is currently facing a critical situation. Vodafone Idea (VIL) released its financial results for the second quarter ending September 30, 2024. After the announcement, Vodafone Idea’s CEO, Akshay Mundra, commented that the company was seeing a reversal in customer losses to BSNL. This shift, he said, was due to improvements in the network experience offered by the government-run telecom company. He emphasized that the Indian wireless sector is at a crucial point, balancing the need for investment in new technologies while also keeping tariffs affordable.

Akshay Mundra explained that to support the growth of new technologies and data services, large investments are required. However, maintaining affordable tariffs is also necessary to ensure that people from all walks of life have access to mobile connectivity. According to him, this can only be achieved if customers who use more data are willing to pay more, allowing the industry to recoup its investment costs. Therefore, the industry needs to further adjust tariffs to ensure it can recover its capital expenses.

Recently, Vodafone Idea raised its tariff rates by 11-24 percent, starting from July 4. Following this price hike, the company saw a drop in the total number of customers as well as 4G subscribers. In the latest quarter, Vodafone Idea’s customer base fell from 21 crore to 20.5 crore, and the number of 4G customers declined from 12.67 crore to 12.59 crore. This decline in customers highlights the challenges the company is facing as it adjusts its pricing strategy.

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