OTHER TEL­COS TAKE A BEAT­ING ON D-STREET

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Cor­re­spon­dent let­ters@hin­dus­tan­times.com

It was a flat day for stock mar­kets on Thurs­day but tele­com com­pa­nies took a beat­ing, with a 6-10% dip in share value wip­ing off more than Rs13,000 crore of their mar­ket cap, af­ter Reliance In­dus­tries un­wrapped its much-awaited Jio mo­bile net­work.

Idea Cel­lu­lar shares plunged 10.50% to Rs83.70, Anil Am­bani’s Reliance Com­mu­ni­ca­tions tum­bled 8.8% to Rs49.15 and Bharti Air­tel’s slipped 6.4% to Rs310.70.

“Prima fa­cie Reliance Jio’s pric­ing is not just highly com­pet­i­tive but also chal­lenges preva­lent tar­iff struc­tures as Jio will of­fer free voice call­ing and SMS ser­vices bun­dled with the data tar­iff,” said Tanu Sharma, as­so­ciate di­rec­tor, In­dia Rat­ings and Re­search.

“This could hurt voice tar­iffs and av­er­age rev­enue per user of ex­ist­ing op­er­a­tors as well as push them to match the pric­ing, in a bid to pro­tect their mar­ket share.”

Ear­lier this week, Air­tel an­nounced a sig­nif­i­cant cut in its pre­paid data tar­iff in a move widely at­trib­uted to Jio’s an­tic­i­pated en­try.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.