Bharti Airtel and Idea Cellular Shares Fell Yesterday After Reliance Jio’s Announcement of New Plans

Reliance Jio Infocomm (RJIL) yesterday announced two new plans and modified the existing Rs. 309 and Rs. 509 plans. Right after Jio announcing the new changes, the shares of India’s top telecom companies have come down by a decent margin.

Jio-India-data

Reliance Jio announced two new plans of Rs. 399 and Rs. 349. The Rs. 399 plan gives 1GB data per day for 84 days, while the Rs. 349 offers 10GB data per month for two months The Rs. 309 and Rs. 509 plan has been modified, and they now offer benefits for 56 days, up from the previous 28 days validity.

Jio, later on, confirmed that the new plans would be applicable for both new and existing users who’re already part of the JioPrime membership scheme.

A new report from Economic Times claims that the tariffs are still aggressive, and incumbent operators have a task ahead of them to stay in the contention. “Analysts still view the tariffs as aggressive, and not yet a relief for rivals such as Bharti Airtel, Vodafone and Idea Cellular that had to drop prices since Jio’s launch in September to stop users from switching to the RIL company,” says the report.

As mentioned earlier, shares of the leading telecom operators in India are reduced. Bharti Airtel closed 2.6% lower at Rs. 394.90 on the Bombay Stock Exchange while Idea Cellular stock fell 3.5 percent to Rs. 85.34.

Furthermore, Nitin Soni, Director at Ratings firm Fitch said “Financial stress levels for Airtel, Idea and Vodafone will continue for at least the next 2-3 quarters as Jio is still charging less than incumbent carriers. Jio is also offering higher data allocations, and one can safely expect it to continue with its disruptive pricing for the next three-quarters until it has acquired a large pan-India subscriber base.”

The report also cites that a top executive from leading telco said to the publication that the “The gradual increase is on expected lines but do not expect the price war to ease out soon. For an ARPU of around Rs 120 (a month), the company is still giving 1GB a day, a signal that nothing much has changed.”

He also warned of more blood-letting on the horizon, as he expects Jio to boost the pace of subscriber additions that has slowed in recent months.

All said, Reliance Jio is eying for yet another disruption in the Indian telecom market, and shortly, the company will announce the Jio 4G feature phone to deplete the incumbent operators further.

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9 Comments on "Bharti Airtel and Idea Cellular Shares Fell Yesterday After Reliance Jio’s Announcement of New Plans"

 

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Idea88
July 12, 2017 2:51 pm 2:51 PM

Surely …Airtel or avido use to give 1gb around 250 rs now due to Jio 1gb a day …

Nikhil
July 12, 2017 5:20 pm 5:20 PM

How? Please let me know!!!!!! I WILL BE FIRST ONE TO RECHARGE OF THAT HAPPENS!!!!!

utk
July 13, 2017 12:00 am 12:00 AM

install MyAirtel app or dial *121*1# to know if the 1 gb/day offer. For me it is 399= Unlimited STD+Local calls + 1gb/day data for 70 days.

Nikhil
July 13, 2017 2:44 pm 2:44 PM

Lol

Ruchit Shah (Gujarat)
July 12, 2017 2:46 pm 2:46 PM

Jio should start giving some offers for port-in customers to gain customers from Avoid.. This will only increase the use of jio as primary sim..

Nikhil
July 12, 2017 5:21 pm 5:21 PM

Jio still not reliable… They should concentrate on launching feature phone and ftth for Jio to be massive hit… If it delays launch of this end for Jio in my opinion…..

Sunny | Lucknow
July 12, 2017 4:54 pm 4:54 PM

I think that would count as an unethical practice.

Ruchit Shah (Gujarat)
July 12, 2017 8:34 pm 8:34 PM

Well maybe but right now avoid does give us offers for porting in.. In Airtel, I received 20Gb for 1st 3 months..

Ram
July 13, 2017 5:59 pm 5:59 PM

Avoid is doing it as illegal business and crying foul. Every customers should get same benefit. Only difference should depend on recharge amount.

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