Vodefone Idea and Airtel set to increase tariffs. Share prices soar.
Shelling Out Cash: Telecom operators Vodafone Idea and Bharti Airtel are set to hike prices from December 1.
The move is perhaps an attempt to keep the business viable, after the two reported massive losses in the quarter ending September 2019, with combined losses standing at INR74,000cr. Here's a look at the tariffs both the players are currently offering.
“The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments. It is, therefore, extremely important that the industry remains viable to support the vision of Digital India,” noted Airtel.
However, despite of posting massive losses in the previous quarter, shares of both Vodafone Idea and Bharti Airtel have offered double-digit returns in the past three sessions.
Vodafone Idea share price climbed c. 38% in today's trade before closing at INR6.15(+38.20%). Airtel share price gained nearly 19% before closing at INR444.65 (+8.66%). The gains were likely on the back of the telcos announcement of a tariff hike. ET Markets
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