Industry pricing structure should change, pay more for higher usage: Gopal Vittal

Bharti Airtel managing director Gopal Vittal has said that the industrys pricing structure should change so that consumers who use more services would need to pay more, backing Vodafone Ideas recent call on similar lines...

During Airtels fiscal fourth quarter earnings call Wednesday, Vittal also said that Airtel -- the largest stakeholder of Indus Towers -- is committed to ensuring the tower company remains strong, and that it wont hesitate to take over the reins to prevent any instability caused by a key customers (read: Vodafone Idea) continuing financial challenges...

He added that Indias current telecom services pricing architecture is a one-size fits all approach that doesnt incentivise customers to upgrade and telcos are forced to hike tariffs for everyone in their effort to boost average revenue per user (ARPU)...

Vittals comments came a day after UKs Vodafone Group Plc flagged uncertainties about cash-strapped Vis ability to meet its payment dues to Indus, saying that it purely hinges on its Indian telecom joint venture's ability to close its long pending fundraise..

The Airtel executives views came a day after the telcos consolidated net profit in the fiscal fourth quarter rose 50% from a year earlier, mainly on the back of a one-time exceptional gain and 4G user additions, though the absence of tariff hikes and fewer days in the period weighed on its results...

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