Vodafone Idea (Vi) prepaid and postpaid tariff plans in India may be hiked soon

Vodafone Idea prepaid and postpaid tariff plans could be hiked soon as to drive growth in the telecom sector, according to a report.

Highlights
  • Vodafone Idea (Vi) might soon hike prepaid and postpaid tariff plans in India
  • Vodafone Idea needs to generate higher Average Revenue Per User to pay AGR dues in the next 10 years
  • Upgrading 3G customers to the 4G network might increase profitability in the long-term

Vodafone Idea (now called Vi) might soon hike its prepaid and postpaid tariff plans in India, hints Kumar Mangalam Birla, chairman of Vi at the Annual General Meeting. The executive said that India’s telecom sector depends on higher tariff rates for future growth. The tariff hike from December was apparently not sufficient for the growth of the sector, TelecomTalk reports. Vodafone Idea is set to raise up to Rs 25,000 crores via debut and equity very soon but still needs to generate higher Average Revenue Per User (ARPU) to pay more than Rs 50,000 crores to the government in the form of AGR dues in the next 10 years.

Vodafone Idea had recently announced that it will be upgrading all its 3G customers in select telecom circles to the 4G network in a phased manner. This should help the company to increase its ARPU and profitability in the long-term. Apart from Vodafone Idea, Bharti Airtel also said that a tariff plan hike is needed to grow the telecom industry’s future. However, there’s no clarity on whether the company would increase the tariffs just yet but it looks like a possibility in the near future.

Vodafone Idea aka Vi had recently launched a new range of prepaid recharge plans in India. These come bundled with a free ZEE5 premium subscription for a year. The prepaid recharge packs, include Rs 355, Rs 405, Rs 595, Rs 795, and Rs 2,595. These offer 4G high-speed data and unlimited voice calling to all networks. The Rs 355 pack comes with 50GB data for 28 days but misses out on voice calling benefit The Rs 405 prepaid pack while offering Zee5 subscription brings 90GB data for 28 days. The Vodafone Idea Rs 595, Rs 795, and Rs 2,595 recharge plans include unlimited voice calling and 2GB data/ per day for 56 days, 84 days, and 365 days, respectively.