New Delhi: Shares of telecom companies on Thursday rose up to 6% in the wake of Reliance Jio deciding to levy call connect charges on customers, a move that is likely to be followed by rivals.
Bharti Airtel shares jumped 7.19% to touch a 52-week high of Rs 385 apiece on the NSE. It closed 4.35% up at Rs 375.05. On BSE, the scrip rallied 6.65% to hit a 52-week high of Rs 384.85 apiece. After shedding some gains, the stock settled 5.05% higher at Rs 377.40.
Vodafone Idea closed 5.82% higher at Rs 6.18 on the BSE and 5.13% up at Rs 6.15 on the NSE.
Unlisted Reliance Jio Infocomm is part of Reliance Industries, whose shares gained 2.76% to settle at Rs 1,362.40 on the BSE. On the NSE, the scrip went up 2.67% to close at Rs 1,360.15.
According to a Kotak Institutional Equities research report, Bharti Airtel and Vodafone Idea can take this as an opportunity to become more competitive.
The report noted that Jio's move would dilute the pricing architecture, one of the most critical changes Jio brought to the industry.
"If Jio gets Rs 15 ARPU (Average Revenue Per User) uplift, we believe Airtel and Vodafone Idea could see a Rs 8-odd and Rs 6-odd ARPU uplift, respectively, as well."
