Telecom stocks surge on announcing tariff hikes; Airtel, Vodafone Idea zoom

On Sunday, Bharti Airtel and Vodafone Idea announced a tariff hike in the range of 15% and 40% across different plans. The tariff hike by both companies will be applicable from December 3, 2019.

Dec 02, 2019 04:12 IST India Infoline News Service

Sensex Moving Up
The BSE Telecom index made a good start on Monday’s session on the back of tariff hike plan. On Sunday, Bharti Airtel and Vodafone Idea  (VIL) announced a tariff hike in the range of 15% and 40% across different plans. The tariff hike by both companies will be applicable from December 3, 2019.

Vodafone Idea said its new plans for its prepaid products and services would be available across India, starting 00:00 hours of December 3, 2019.

Meanwhile, Reliance Industries (RIL) said Jio has also mentioned that it would take price hikes of up to 40% and offer up to 300% more benefits.  Jio will be introducing New All-in-One plans with unlimited voice and data. These plans will have a fair usage policy for calls to other mobile networks. The new plans will be effective from December 6, 2019.

Before Oct-2019, JIO used to be at a 20% discount to Bharti and VIL’s plans. JIO’s off-net charging announced in October translated into 10-15% effective price increase. JIO had stated in late-November that it would take a further price hike (unquantified) in the coming weeks.

The BSE Telecom index climbed 7% or 76 points at 1,192 levels in the morning trade. Vodafone India surged over 23%, followed by Bharti Airtel jumped 7%, RCom rose 5% and Infratel gained 2.5% on the telecom index.

“In line with its commitment to provide customers with simple, convenient and affordable products, VIL has curated an optimum range of feature-rich plans for both voice and data. Customers can avail their benefits by just selecting the plan best suited to their specific needs and continue to enjoy seamless connectivity across India.  VIL continues to actively invest in building digital infrastructure by embedding new-age technologies to make its network future-fit. Building on its largest spectrum footprint and by accelerating its network integration, VIL is speedily expanding both its coverage and capacity and is well on track to offer 4G services to 1 billion Indian citizens by March 2020,” Vodafone Idea said in the press note on Sunday.

Shashwat Sharma, Chief Marketing Officer, Bharti Airtel said, "our new mobile plans offer tremendous value to our customers and are backed by a superior network experience on Airtel’s nationwide 4G network. Airtel will continue to make large investments in emerging technologies and digital platforms to deliver world-class experiences to our customers.”  Airtel’s new plans, represent tariff increases in the range of a mere 50 paise/day to Rs. 2.85/day and offer generous data and calling benefits. In addition, Airtel provides exclusive benefits as part of the Airtel Thanks platform, which enables access to premium content from Airtel Xstream (10,000 movies, exclusive shows, and 400 TV channels), Wynk Music, device protection, anti-virus protection and much more.

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