Airtel, Idea Shares Hit After Reliance Jio's Surprise Republic Day Offer
New Delhi: Shares of two telecom majors – Bharti Airtel and Idea Cellular – took a hit as they fell nearly 6 per cent after Reliance Jio announced a surprise Republic Day offer for its users. Upping the ante against its rivals, Reliance Jio announced 50 per cent more data on all tariff plans with effect from January 26.
Under this offer, all existing Jio 1GB per day packs will be increased to 1.5GB per day, while 1.5GB per day packs are now enhanced to 2GB per day. Wooing the customers further, the Mukesh Ambani controlled company has also introduced lower entry price-point for free voice and unlimited data (capped at 2GB) for 28 days at Rs 98.
Post the announcement, the stocks of Airtel tanked at 5.99 per cent and Idea cellular stocks declined to 5.58 per cent. Bharti Airtel had revised its plans earlier this week.
Jio entered India’s highly-competitive telecom market in late 2016 and disrupted the space with free-voice and cut-price data plans, forcing rivals to match its tariffs and dragging their margins lower.