On Friday, Ravinder Takkar, Vodafone Idea Managing Director, and Chief Executive hinted at tariff hikes said it is not a good idea to discard 2G network as it gave low-cost service choice to a certain section of the general public. Approximately 280 million clients, about 58 percent of Vodafone Idea are on the 2G network.
While featuring a five-direct methodology toward increment income and benefit, the administration said in an investigators’ approach on Friday that the organization will consider raising assets after the result of the balanced gross income case in the Preeminent Court. In the first quarter of this financial year, Vodafone Idea posted a pre-tax loss of Rs 25,460 crore due to lower revenue and provisioning. Due to the Covid-19 lockdown, its first-quarter result was impacted and it’s ARPU or average revenue per user fell sequentially as the conclusion of stores constrained energize choices.
Focus on enterprise business, network investment in 16 top revenue-generating circles, cost optimization, initiatives to increase ARPU, partnerships are among takkar’s five-point strategy to drive growth.
A week ago, Mukesh Ambani, Reliance Industries Chairman had explained that strategy steps ought to be taken to make 2G part of history. Takkar didn’t name the Reliance chairman while mentioning his objective facts
He added that the company would likewise concentrate on changing 2G subscribers to 4G networks. He, in any case, said that 2G networks offered an assistance choice to a segment of the general public. Indeed, even in created nations, 15 percent of users use 2G, he further added.
The Vodafone MD mentioned that current ARPUs in the business was stifled. While the telecom division controller was at this point to accept an approach to the floor cost, Takkar said there was a chance to expand duties.
The telecom organization has AGR duty of Rs 58,254 crore and has looked for 15 years time span to take care of the obligations. The Supreme Court is relied upon to articulate its request on the time span. Akshaya Moondra, the company’s chief financial officer, said the court request would empower it to survey financing prerequisites and will make an appropriate move post the request.