Akshaya Moondra, the CEO of Vodafone Idea, has acknowledged a rise in prepaid mobile number portouts to BSNL, the state-run telecom company, following Vodafone Idea’s recent tariff increase. This shift is attributed to BSNL’s decision to maintain its current tariffs, making it a more attractive option for price-sensitive customers.
Company Expects Customers to Return Soon: Akshaya Moondra, CEO
Moondra remains optimistic, expressing confidence that customers who switched to BSNL due to the price difference will likely return to Vodafone Idea once they experience the superior coverage and 4G service quality offered by the company. He emphasized that Vodafone Idea will closely monitor the situation and take necessary action.
BSNL Benefits from Tariff Hikes by Private Telcos
BSNL appears to be reaping the benefits of recent tariff hikes by private telecom operators. Low-income and prepaid subscribers are increasingly switching to BSNL, drawn by its more affordable mobile tariffs.
Tariff Hike Impacts Customer Behavior
Moondra observed that the impact of the tariff hike aligns with previous trends, including customers downgrading to lower-priced plans. However, he noted that SIM consolidation due to the tariff hike has been less significant this time compared to earlier instances.
Tariff Interventions a Step in the Right Direction
Moondra views the tariff interventions as a positive development for the industry, contributing to improved return on investment and cash generation. He stressed the need for further tariff rationalization to enable the industry to fully cover its cost of capital.
Industry Needs Higher ARPU for Sustainable Investment
Gopal Vittal, the managing director of Bharti Airtel, echoed the sentiment that the industry requires a higher average revenue per user (ARPU) to support long-term sustainable investment and achieve respectable return ratios. He believes that the recent tariff repair will contribute to improved financial health and return ratios for the industry.
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