As per report the company said that it is hiking tariffs due to the crisis in the telecom industry. Meanwhile the company said in a statement “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”.
Furthermore it stated that mobile data charges in india are the cheapest in the world, and that it was expanding its coverage to offer to offer 4G services to 1 billion indian citizens by march 2020. vodafone idea has over 300 million customers in India. Perhaps vodafone idea Ltd, which posted a loss of Rs 50,921 crore in Q2, earlier said that it would be able to continue to run operations only based on the relief it gets from the government.
Earlier on monday, on the news of a possible government revival, Vodafone’s stock jumped nearly 25% on the NSE. Apparently this came after Finance minister nirmala sitharaman said the government doesn't want any telecom company to shut operations. Moreover vodafone Idea’s massive loss the biggest loss in India’s corporate history came after the supreme court pronounced its judgment on the matter of Adjusted Gross Revenue. Apparently a day before the results for Q2, the Department of Telecommunications notified telcos that the dues had to be paid within three months and after this, both vodafone and Airtel posted huge losses.
