Vodafone Idea - Hikes Prepaid Tariffs By 20%, All Eyes Now On Reliance Jio: Motilal Oswal
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Motilal Oswal Report
Following Bharti Airtel Ltd. and after months of expectation, Vodafone Idea Ltd. finally announced a tariff hike to the tune of 20% across its price plans, effective from November 25, 2021.
It is now important for Reliance Jio to follow suit to ensure sustainability of the tariff hikes.
Vodafone Idea’s average revenue per user, which stands at a mere Rs 109 (40% below Bharti Airtel), given the higher proportion of customers on lower base plans, could see a big push, provided it doesn’t see a huge market share loss.
This hike, catering to ~70% of its revenue pool, can potentially offer an incremental Ebitda of Rs 38 billion (Q2 FY22 annualised), i.e. a 68% jump versus 13% for Bharti Airtel.
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