Business

Vodafone Idea, Bharti Airtel shares zoom up to 30%

Vodafone Idea, Bharti Airtel shares zoom up to 30%
NEW DELHI: Shares of Vodafone Idea and Bharti Airtel on Tuesday jumped up to 30 per cent after both the companies announced a hike in mobile phone call and data charges from December.

Vodafone Idea zoomed 29.75 per cent to Rs 5.80 on the BSE; while Bharti Airtel jumped 6.31 per cent to Rs 435 - its 52-week high.

Airtel, Vodafone Idea to hike tariffs next month to stay afloat

Telecom tariffs for over 60 cr mobile customers will go up from next month with Vodafone-Idea and Bharti Airtel deciding to increase rates in view of losses, govt dues & mounting debt. Airtel carries a debt of Rs 1.16 lakh cr & has been ordered to pay Rs 21,682 cr in licence fee outstanding by SC. For Vodafone-Idea the debt is Rs 1.2 lakh cr and it has to pay Rs 28,309 cr.


Faced with intense competition and unprecedented statutory dues, 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.