New Delhi: Airtel will increase the prices of its services from December, the company announced on Monday evening.
Airtel’s announcement comes hours after Vodafone said something similar, although Vodafone Idea gave a specific date of December 1 after which the prices of its services will go up.
Vodafone Idea network will soon cost more as in a major change to the existing tariff rates, Vodafone Idea has announced to increase the tariffs from December 1, 2019.
The announcement comes at the time when Vodafone is struggling to keep up with its AGR-related dues of Rs 44,200 crore to the government. Analysts have predicted that this due could further rise placing the company’s balance sheet in a more critical position.
Consumers who use Airtel or Vodafone Idea services will now pay slightly more for the services from these two companies.
“Airtel will increase price offerings in the month beginning December,” an Airtel spokesperson said. “While continuing to provide affordable tariffs to customers, it would balance the needs of the company to remain viable and thereby continue to invest in the much needed digital infrastructure and maintain the quality standards required by our customers.”
The company highlighted that “the telecom sector is highly capital intensive with fast-changing technology cycles that require continuing investments.”
The price hike announcement from Airtel and Vodafone comes a few days after the two companies declared a massive losses for the last quarter.
Both Airtel and Vodafone have appealed to the government to change the terms and conditions regarding payment of AGR dues but so far the government hasn’t made any public announcement.
Currently, from the statements of Vodafone and Airtel it is not clear how much prices will go up for the prepaid and postpaid plans from the two companies.