NEW DELHI: Telecom tariffs are “nonetheless very low” and pricing revival is essential for the long-term progress of the sector, Vodafone Thought chairman Kumar Mangalam Birla stated on Wednesday.
Addressing Vodafone Thought Ltd (VIL) shareholders on the firm’s Annual Common Assembly, Birla stated the telecom industry had witnessed the primary spherical of tariff hikes by all operators in December 2019.
“Nevertheless, tariffs are nonetheless very low and subsequently pricing revival is essential for the long-term progress of the sector,” he stated.
The Common Income Per Consumer (ARPUs) within the Indian market proceed to stay the bottom on the planet, whereas information consumption is among the many highest globally.
“The decision on the long-pending business concern of Adjusted Gross Revenue or AGR additionally added to the financial woes of telecom operators… Efforts from the Authorities of India to melt the monetary burden by recommending fee by instalments has now been upheld by the Supreme Court docket,” Birla stated.
In a inventory trade submitting, Vodafone Thought stated a number of objects – together with resolutions searching for approval of borrowing powers of the corporate, alteration of Articles of Affiliation, nod of issuance of securities of as much as Rs 15,000 crore – as set out in its September four discover, had been transacted on the AGM.
The outcomes of the voting will likely be intimated individually, the submitting stated.
Earlier this month, the board of Vodafone Thought accepted fund-raising plans of as much as Rs 25,000 crore by a mix of fairness and debt devices, topic to shareholders’ nod.
The board’s transfer had come simply days after Supreme Court docket directed telecom operators to pay 10 per cent of whole Adjusted Gross Income-related dues this 12 months, and remainder of the funds in 10 instalments ranging from subsequent fiscal 12 months.
The bold fund elevating plans promise to throw a lifeline to cash-strapped Vodafone Thought, which has suffered huge losses, has been dropping subscribers and ARPUs, and faces excellent statutory dues of about Rs 50,000 crore.



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