The year 2020 had enough stumbling blocks for the Indian consumers but here's one more for the Vodafone idea consumers. Vodafone Idea (Vi) is considering increasing tariffs 15-20 per cent by the end of 2020 or early next year.
The reason for this according to various reports is that the telco is in a tight spot between making a financial recovery and curtailing customer losses. The problem will get even weighty with Bharti Airtel possibly following the lead.
Amid the ongoing pandemic, mobile network services have taken centerstage in the professional working ecosystem, especially since they are working from home. But what if your connectivity is unstable and your service provider provides poor service quality. Well, this has happened to Vodafone-Idea customers.
Having said that, people have been highlighting their plights on social media about how their work has severely been affected due to the miserable services provided by one of the largest telco in the country
With the hike in rates and rising tariffs, the question remains are the Vi consumers satisfied with the services. Let's find out what the consumers have to say about Vi.
Vi services are poor and so is the speed: Vi unhappy customers
A user said, "Dear Vi please don't increase tariff near future. If you increase it, you will lose your ground. The poor in India are facing problems for recharging every month." According to sources, "The company is likely to increase tariffs even as telcos wait for the regulator to fix floor prices."
It was earlier reported that by a publication that a three-month timeline was set by the financially stressed telco to complete its proposed fundraising by early 2021. On the other hand, consumers are already irate over the services provided by the service provider.
A user wrote on Twitter, "Two days before Vodafone volte started coming in my device after a lot of complaints now again volte has gone from my Vi number now it is time to port Vi services of Vi are also very poor in my area and speed is also poor."
And another one wrote, "Made a big mistake by PORTING into VodafoneIdea @VodafoneIdeaIN network. Their website asks to pay the amount for plan subscription during Porting and its more than 6Days, the Plan was not activated to my number. Customercare & emails to Vi is helpless."
With the wallet share changing, the price-conscious Indian consumer will be forced to choose what he spends his money on and in this process; he may cut spending in other areas. People feel that increasing the tariffs by as much as 25% might not be possible at one go.
Current rate 'unsustainable'
In December 2019, India's three private telcos hiked rates and it was for the first time since the entry of Reliance Jio Infocomm in 2016. It should be noted that as compared to Bharti Airtel and Jio, Vi's average revenue per user at the end of the September quarter still lags.
Earlier, Vi MD Ravinder Takkar had stated that the company will not shy away from increasing the tariff as the current rates are "unsustainable" and he was confident that its rivals will follow suit.
A Deutsche Bank report stated that Vi remains highly leveraged with Rs 1.7 lakh crore in net debt and AGR dues.