Airtel and Vodafone Idea to increase tariffs from December 1

Recently, there was a report that Vodafone might exit from India and soon the company squashed the rumors. Airtel and Vodafone reported losses in Q2 2019. Now both Airtel and Vodafone Idea have announced that they will be increasing tariffs effective December 1st, 2019 due to the acute financial stress in the telecom sector. The tariff hike is the first such hike since 2012 and this move by both Airtel and Vodafone Idea is said to have a positive impact in the telecom market. Analysts said that every Re. 1 increase in ARPU for Vodafone Idea will increase its revenue and EBITDA (Earnings before interest, tax, depreciation, and amortization) by Rs 370 crore to Rs 380 crore. Similarly, Airtel's revenue will also increase upon tariff hike and this will help in the revival of these companies under stress. In related news, shares of Vodafone Idea and Bharti Airtel jumped up to 30 percent today. Vodafone Idea's share increased 29.75 percent to Rs 5.80 on the BSE and Bharti Airtel's share increased 6.31 percent to Rs 435. Vodafone Idea in a statement said: The acute financial stress in the telecom sector has been acknowledged by all stakeholders and a high level Committee of Secretaries (CoS) ...