Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Idea, Airtel Share Prices Drop as Jio Announces it Will Match Their Best Selling Plans

Halfway through Mukesh Ambani’s speech at a tech industry conference the share prices of Airtel and Idea started dropping. The stocks were reacting to the news that Jio would match their best-selling plans and offer 20% more data for the same price.

Tushar Dhara | News18.com

Updated:February 21, 2017, 5:12 PM IST
facebookTwitterskypewhatsapp
Idea, Airtel Share Prices Drop as Jio Announces it Will Match Their Best Selling Plans
Reliance Industries Chairperson and Managing Director Mukesh Ambani making speech. (Image: TV Grab/CNN-News18)
Loading...

New Delhi: Halfway through Mukesh Ambani’s speech at a tech industry conference the share prices of Airtel and Idea started dropping.

The stocks were reacting to the news that Jio would match their best-selling plans and offer 20% more data for the same price.

Idea Cellular Ltd gained to 108.45 rupees at 2:05 pm and then lost 0.9% to 107.5 rupees before rebounding. Bharti Airtel Ltd shares dropped from 370.05 rupees a piece to 360.85 rupees, a 2.5% drop.

Before Mukesh Ambani’s speech, the share prices of the two companies, which are competitors of Jio in the data market, rose on expectations of an announcement regarding tariffs. The 4G data service has been free of charge since its launch on September 5.

The other piece of news that probably caused brokers to sell Idea and Bharti shares was Ambani’s appeal to customers to port their numbers to Jio from other networks.

“Lakhs of customers have used mobile number portability to move to Jio and this trend is increasing,” Ambani said. “MNP is becoming simpler with an aadhar based process and I hope more customers will opt for MNP and make Jio their permanent home.”

Analysts have pointed out that many customers prefer to use Jio for Data services while relying on other networks for voice calls. The statements by Ambani are seen as a sign that Jio wants customers to use its 4G network for both purposes.

In order to facilitate this, Jio has decided to keep voice calls free on its 4G LTE network even after April 1, when it finally starts charging for services. It has also thrown in an offer called Jio Prime to induce more customers to sign up before April 1 on attractive terms.

This is the second time that competitors share prices have eroded in value as a result of Jio’s offers. On September 1 last year the market capitalization of both companies declined by 12,000 crores after Mukesh Ambani, the Chairman of Reliance Industries Ltd, announced the launch of Jio.

Airtel lost Rs 9,800 crore and Idea’s M-Cap shrunk by 2,450 crore.

Since then the 4G data market has seen fierce competition and consolidation as companies sought to defend their turf against the newcomer. Airtel and Idea have both posted losses while Vodafone’s India unit has opened merger talks with Idea in order to consolidate the position of both companies.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Ashish Yechury
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 54.10 -15.60
Maruti Suzuki 5,971.75 -2.02
Indiabulls Hsg 394.75 -5.84
ICICI Bank 386.60 -3.19
HDFC 1,974.60 -0.69
Company Price Change %Gain
Maruti Suzuki 5,938.30 -2.55
Yes Bank 54.15 -15.52
Tata Power 64.65 0.94
Indiabulls Hsg 395.15 -5.73
ICICI Bank 386.55 -3.16
Top Gainers
Company Price Change %Gain
Tata Motors 124.20 2.01
UPL 562.05 0.90
HDFC Bank 1,101.05 0.66
Bharti Airtel 337.60 0.60
Coal India 193.45 0.57
Company Price Change %Gain
Tata Motors 124.25 1.97
HDFC Bank 1,100.40 0.64
Bharti Airtel 337.70 0.58
Coal India 193.45 0.49
Asian Paints 1,554.35 0.40
Top Losers
Company Price Change %Gain
Yes Bank 54.10 -15.60
Zee Entertain 308.85 -7.92
Tata Steel 344.65 -3.80
IndusInd Bank 1,282.25 -3.62
ICICI Bank 386.60 -3.19
Company Price Change %Gain
Yes Bank 54.15 -15.52
Tata Steel 344.95 -3.66
IndusInd Bank 1,281.95 -3.59
ICICI Bank 386.55 -3.16
Maruti Suzuki 5,938.30 -2.55

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results