After Vodafone Idea, Mukesh Ambani led Reliance Jio has announced to increase mobile phone tariffs in next few weeks. The company said that it intends to take measures including “appropriate increase in tariffs” to comply with regulations.
“As per media reports, we understand that TRAI is likely to initiate a consultation process for revision of telecom tariffs. Like other operators, we will also work with the Government and comply with the regulatory regime to strengthen the industry to benefit Indian consumers and take measures including appropriate increase in tariffs in next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments,” the company said in a press release.
The news comes soon after Vodafone Idea and Bharti Airtel announced their intention to hike tariffs December 1. After their announcements, Bharti Airtel shares today hit a 52-week high of Rs. 435 while Vodafone Idea too remained in high demand.
The two companies recently posted a combined loss of over ₹73,000 crores in the second quarter. Vodafone Idea’s 50,921 crore loss in the second quarter is the highest-ever for a corporate in India.
The recently announced massive net loss was on acount of the Supreme Court judgement on the Adjusted Gross Revenue (AGR) matter. The apex court has upheld the government’s position on including revenue from non-telecommunication businesses in calculating the annual Adjusted Gross Revenue (AGR) of telecom companies, a share of which has to be paid as licence and spectrum fee to the exchequer.
Vodafone Idea said in a regulatory filing that the SC order on AGR has resulted in liabilities on accounts of licence fee and spectrum charges to the tune of Rs 44,150 crore which has to be paid within three months.