Vodafone Idea Raised Tariffs for Prepaid and Postpaid plans

Vodafone Idea has made the decision to raise the rates and announced on June 28th that there will be a 10%-20% hike in rates for both prepaid and postpaid plans, which will come into effect on July 4th. Market leader Jio has already increased the price hike up to 25% along with Airtel 12-27% hike so as compared to that Vodafone Idea is a little bit less but this price hike will impact more users across India. After signing the 5G spectrum for 3510 crores they have increased the price hike and this money they want to utilize for the next few quarters to enhance the service in 4G services and launch the 5G services too.

As per the industry experts, this price hike is for the next 6 to 9 months and once end users will digest this one then this will become the routine for the next couple of months to cover up the investment and losses in the telecom sector.

Tariff hikes by 10-20% from Vodafone-idea

From 4th July, the 28-day plan is going to increase by approximately 11% which is 199 and the existing one is 179. They also increased the popular plan of 84 days which is the most selling due to 1.5 GB data/day to 859 rupees which is earlier 719 only.

Annual plans that have a validity of 365 days directly jump 21% to 3499 rupees and earlier it’s just 2899. It’s good news only for a 365-day validity plan with a 24 GB data limit no plan change right now. 

Flat opening on Vodafone-idea stock:

Currently, Vodafone-idea is trading at 17.90 rupees this is not a big move in the stock after the rate hike but the best part is that the market digests this rate hike and the stock is not falling. After good investment and improvement in the 4G services and good investment for the 5G spectrum, many industry experts can suggest this stock as a multi-bagger in the near future as per the current value.

Conclusion: This rate hike will reduce the losses for all the 3 leading companies in India that are operating in the telecom sector starting from Jio, Airtel, and Idea respectively. It’s an extra burden on the end user but to survive in this industry they have to do this rate hike and this is not going to end here so later on this year or the start of 2025 we can see more hikes from these companies. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.