Airtel, Idea shares down after Reliance Jio’s offer announcement - Hindustan Times
close_game
close_game

Airtel, Idea shares down after Reliance Jio’s offer announcement

New Delhi, Hindustan Times | By
Feb 22, 2017 10:21 AM IST

Telecom stocks came under selling pressure today, led by Airtel which lost 4%, after Reliance Jio Chairman Mukesh Ambani announced a slew of offers, including 20% more data than any rival from April.

New Delhi

Reliance Industries Limited Chairman Mukesh Ambani speaks during a press briefing of Reliance Jio in Mumbai.(PTI)
Reliance Industries Limited Chairman Mukesh Ambani speaks during a press briefing of Reliance Jio in Mumbai.(PTI)

Telecom stocks came under selling pressure today, led by Airtel which lost 4%, after Reliance Jio Chairman Mukesh Ambani announced a slew of offers, including 20% more data than any rival from April.

Hindustan Times - your fastest source for breaking news! Read now.

“Last few months a lot of tariff plans have been launched, which has caused data and value anxiety. Jio will monitor all publically announced plan for all operators across the country on a regular basis… At Jio we will not only match the highest selling tariff of each of the telecom operators... but provide 20% more data for all those plans,” Mukesh Ambani said at a press conference in Mumbai.

Shares of Bharti Airtel declined by 4.02% to end at Rs 360.55 on BSE. During the day, it lost 4.27% to Rs 359.60.

Idea Cellular went down by 0.37% to close at Rs 108.30 after falling 1.88% to Rs 106.65 in intra-day.

Shares of Reliance Industries Ltd on the other hand rose by 1.36% to close at Rs 1,088.25.

Reliance Jio has crossed the 100 million customers mark in 170 days of launch, Ambani said that his company will continue to offer free voice calls and national roaming post April 1, when its promotional free voice and data offer ends.

For existing customers, he announced that the current benefits will continue under a new tariff plan for another 12 months by payment of Rs 303 per month and a one-time joining fee of Rs 99.

The competition from Jio is very stiff; and has most of the existing telecom companies on its knees. To take on Jio, Vodafone Group Plc’s Indian unit is in merger talks with Aditya Birla-promoted Idea Cellular Ltd. Vodafone Group had to write off 5 billion euros in its Indian business last year and defer a proposed share sale which will become irrelevant should the merger go through.

Idea has been pushed into the red, with losses of Rs 384 crore in the third quarter of 2016-2017. While Airtel’s profits have fallen 55% in the price war against Jio.

(With inputs from PTI)

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Suchetana Ray covers aspects of the government’s economic policy. A news junkie, she is invested in HT’s ‘digital first’ policy.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On