Ravi Shankar Prasad Refuses To Step In To Raise Tariffs; Tells Vodafone Idea To Battle Competition On Its Own(Sanjeev Verma/Hindustan Times via GettyImages) 

Telecom Minister Ravi Shankar Prasad, according to a report in The Economic Times (ET), turned down the proposal of Vodafone Idea top executives to interfere in raising tariffs, and asked them to take to internal measures in order to tackle the competition.

It is believed to have been brought up in a meeting, which was described as “a courtesy call” in a statement released by Vodafone Idea, that the ministry’s intervention in raising tariffs could help the sector recover from the losses due to on-going price war.

“In a recent meeting with the minister, Vodafone Idea top executives, including Aditya Birla Group chairman Kumar Mangalam Birla and Chief Executive Officer (CEO) Ravinder Takkar, highlighted the cash flow challenges faced by the telco, and how a rise in tariffs could turn the sector around, and help the telco as well,” ET quoted a source from the meeting.

Although Prasad agreed to the fact that the telecom sector was undergoing high debts and dropping revenues resulting in financial distress for the industry, he showed his inability to step into the matter mentioning that tariffs were the prerogative of the Telecom Regulatory Authority of India (TRAI) and were out of his jurisdiction.

The meeting was set up in the wake of Takkar’s appointment as the Managing Director (MD) and CEO of the telecom operator, who took over the post last month from Balesh Sharma.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement