Vodafone Idea share price jumps 29 pct after tariff hike

 

HIGHLIGHTS

• Shares of Vodafone Idea jumped over 29 percent after the company announced a hike in recharge tariffs.
• Faced with intense competition and unprecedented statutory dues, the company said the hike is warranted for the viability of their business.
• Shares of Bharti Airtel also jumped to 52-week high.

 

Shares of Vodafone Idea jumped over 29 percent after the company announced a hike in recharge tariffs from December. Vodafone Idea zoomed 29.75 percent to Rs 5.80 on the BSE.

Faced with intense competition and unprecedented statutory dues, Bharti Airtel and Vodafone Idea on Monday announced a hike in the mobile phone call and data charges from December saying the increase was warranted for the viability of their business.

Bharti Airtel share price also jumped 6.31 percent to Rs 435 - its 52-week high.

First, Vodafone Idea in a statement announced plans to raise tariffs for the first time in three years only to be followed by a similarly worded statement minutes later from Airtel. The two did not quantify the increase in rates but said that the hike will be effective beginning next month. "To ensure that its customers continue to enjoy world-class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs effective December 1, 2019," Vodafone Idea said.

The telecom sector is highly capital intensive with fast-changing technology cycles that require continuing investments, Bharti Airtel said. "It is, therefore, extremely important that the industry remains viable to support the vision of Digital India. Accordingly, Airtel will appropriately increase price offerings in the month beginning December," it added.

(With inputs from agencies.)