6 days ago
Vi Chairman Calls for Tariff Rationalisation to Sustain Telecom Sector
Kumar Mangalam Birla, the chairman of Vodafone Idea, said phone companies in India may need to charge more over time.
He said Indian customers currently pay some of the lowest average prices in the world.
According to him, higher and more suitable prices could help telecom companies maintain networks and build new technology.
Vodafone Idea plans to focus on mobile connections, connected devices, cloud services, security and wholesale services.
Examples of connected-device services include connected cars, smart meters and vehicle tracking.
Birla said Vodafone Idea is strong in connected cars and wants to expand in other areas.
The company said it began gaining subscribers each month from February 2026.
Its average revenue per customer rose to ₹190 in FY26.
The company also received funding and placed ₹9,000 crore in network investment orders.
Kumar Mangalam Birla said India’s telecom sector needs periodic tariff revisions for long-term financial sustainability.
Birla identified connectivity, IoT, cloud, security and wholesale services as Vodafone Idea’s key growth pillars.
Vodafone Idea reported positive monthly subscriber additions from February 2026, its first since the Vodafone-Idea merger.
The company’s customer ARPU reached ₹190 in FY26, which Birla described as the industry’s strongest year-on-year improvement.
The Aditya Birla Group committed ₹4,730 crore through warrants, while Vi secured about ₹6,400 crore in funding by August 2026.
- Who
- Kumar Mangalam Birla, chairman of Vodafone Idea, and Vodafone Idea Limited.
- What
- Birla called for periodic telecom tariff rationalisation and outlined Vodafone Idea’s growth and investment plans.
- Where
- India.
- When
- The remarks were made at Vodafone Idea’s annual general meeting and published on August 27, 2026.
- Why
- Birla said tariff revisions are needed because average revenue per user remains low and telecom companies need financial strength to maintain networks and invest in new technologies.
Key facts
- Company
- Vodafone Idea Limited, also known as Vi
- Chairman
- Kumar Mangalam Birla
- FY26 customer ARPU
- ₹190
- Subscriber trend
- Positive monthly additions from February 2026
- Aditya Birla Group commitment
- ₹4,730 crore through warrants
- Funding secured by August 2026
- About ₹6,400 crore
- Capex orders
- ₹9,000 crore
Quotes
Kumar Mangalam Birla
Chairman of Vodafone Idea and the Aditya Birla Group’s telecom company representative at the AGM
“India’s ARPU remains among the lowest globally, making periodic tariff rationalisation essential to ensure the industry’s long-term sustainability and ability to earn reasonable returns on capital. Continued investments in network expansion and next-generation technologies require a financially healthy telecom ecosystem. A sustainable industry is in the interest of customers, operators and the broader digital economy.”
thehindubusinessline.com
“This is a large industry and there’s space for all of us. Vi is a third player in buckets of leadership in some circles. With the investments we are making and in enabling strengthening of network I am confident that there are opportunities for the company to grow in the market.”
thehindubusinessline.com
Sources
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