Active Stocks
Fri Sep 22 2023 15:58:38
  1. Tata Steel share price
  2. 126.7 -0.86%
  1. HDFC Bank share price
  2. 1,529.2 -1.57%
  1. State Bank Of India share price
  2. 598.1 1.67%
  1. Power Grid Corporation Of India share price
  2. 199.1 -1.34%
  1. Tata Motors share price
  2. 621.1 -0.93%
Business News/ Industry / Telecom/  AGR effect: After Voda Idea, Airtel to also raise tariffs from December 2019

Stung by the ongoing telecom crisis, Bharti Airtel said on Monday it will increase telecom service rates from 1 December, 2019. The announcement comes hours after Vodafone Idea saying on Monday that it will "suitably increase the prices of its tariffs" from 1 December. Both the players, however, did not announce the quantum of hike that is expected to be worked out between now and 1 December.

"We understand that TRAI is likely to initiate a consultation for bringing rationality in pricing in the Indian mobile sector which has been operating at prices that have been eroding the viability of the sector," Airtel said in its statement.

"Sector is highly capital intensive with fast changing tech cycles that require continuing investments. It is, therefore, extremely important that industry remains viable to support vision of Digital India. Accordingly, company will hike prices from December," the company further said.

Bharti Airtel stock on Monday ended 4.62% higher at 411.20.

Bharti Airtel posted a staggering 23,045 crore net loss for the July-September quarter due to provisioning of 28,450 crore in the aftermath of the Supreme Court ruling on statutory dues. Airtel and Vodafone Idea have posted a combined loss of 74,000 crore in Q2 by provisioning for the AGR pending dues.

"The acute financial stress in the telecom sector has been acknowledged by all stakeholders and a high level Committee of Secretaries (CoS) headed by the Cabinet Secretary is looking into providing appropriate relief," Vodafone said.

Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 18 Nov 2019, 07:43 PM IST
Next Story
Recommended For You
Switch to the Mint app for fast and personalized news - Get App