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Another thing is the average revenue per user (ARPU). ARPU is a crucial metric for telecom companies. It represents the average amount of money each customer spends per month. For a while, the ARPU for Vi was pretty low, which meant they weren't making enough money from each user. Increasing tariffs is a direct way to boost ARPU. It's like, if each customer pays a bit more, the total revenue goes up significantly. This increase in ARPU is essential for Vi to stay afloat and make those big investments. It's not just about survival; it's about being able to compete with other companies in the market like Airtel and Jio. These competitors are constantly investing in their networks and offering new services, so Vi needs to do the same to stay relevant. So, basically, **_tariff hikes_** are about ensuring financial stability and improving profitability.
