Vodafone Idea, Bharti Airtel shares zoom up 30% after tariff hike announcement
On November 18, Vodafone Idea and Bharti Airtel announced a hike in tariff from December 1. Today (November 19) Vodafone Idea zoomed 29.75% to Rs 5.80 on the BSE. Bharti Airtel jumped 6.31% to Rs 435 - its 52-week high.
New Delhi: Shares of Vodafone Idea and Bharti Airtel on Tuesday jumped up 30% on Tuesday after both companies announced a hike in mobile phone call and data charges from December.
Vodafone Idea zoomed 29.75% to Rs 5.80 on the BSE. Bharti Airtel jumped 6.31% to Rs 435 - its 52-week high.
Faced with intense competition and unprecedented statutory dues, Bharti Airtel and Vodafone Idea on Monday announced a hike in mobile phone call and data charges from December saying the increase was warranted for viability of their business.
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.