Vodafone Idea announced on Monday that it will increase mobile service rates as of December 1, 2019.
The announcement approaches the heels of the telecom operator that a consolidated loss has been reported. ₹50,921 crore – the highest loss recorded by any Indian company – for the second quarter ended September 30 due to debts arising from the Supreme Court decision in the adjusted gross income case.
Vodafone Idea, "To ensure that customers continue to enjoy world-class digital experiences, Vodafone Idea will increase the price of tariffs accordingly, effective from December 1, 2019." Said.
However, the company did not disclose the quantum or details of the proposed tariff hike.
Vodafone Idea, the ability to continue business now depends on the state aids and the positive results of the legal option, he said.
Acute financial stress in the telecom sector was acknowledged by all stakeholders, and the senior Secretariat Committee (CoS), headed by the Cabinet Secretary, seeks to provide appropriate relief.
Vodafone Idea has about 300 million mobile subscribers.
The Vodafone Idea stock increased by about 25% on Monday at a possible government-led revival in the NSE.
Vodafone's sharp reversal in stock prices came after Finance Minister Nirmala Sitharaman said the government did not want any telecom company to stop its operations.
Vodafone Idea closed at 24.66% ₹4.55 stock at NSE.
With PTI inputs