Beyond fundraising, tariff hike-led ARPU improvement must for VIL

Vodafone Idea will need a rise in ARPU to meet its obligations in the long run, and without undertaking tariff hike, its cash from current fundraising will sustain operations till the end of the financial year 2022-23, according to a report.

Tariff hike is imminent to fund Voda Idea’s financial obligations and capex (capital expenditure) plans, Axis Capital has said in its latest report.

“We think that despite the fund raise, Vi (Vodafone Idea) will require ARPU (average revenue per user) increase to meet its cash flow obligations in the long run,” it said and added that in absence of tariff hike, cash from current fund raise will sustain operations till end of FY23. PTI