Bharti Airtel, Idea shares surge on call tariff hike hopes

MUMBAI Tue Jan 15, 2013 5:37pm IST

An employee checks a customers' feedback book next to a Bharti Airtel logo inside its shop in Kolkata May 2, 2012. REUTERS/Rupak De Chowdhuri/Files

An employee checks a customers' feedback book next to a Bharti Airtel logo inside its shop in Kolkata May 2, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - Shares in Indian mobile phone network operators Bharti Airtel Ltd(BRTI.NS) and Idea Cellular Ltd(IDEA.NS) surged on Tuesday on speculation that they may soon raise their prices for voice calls, several traders said.

Both companies declined to comment on the market rumours.

India's mobile phone market, the world's second-biggest by customers behind China, has not seen any real increase in call prices in the last three years after a vicious price war sent call prices tumbling in late 2009. Voice calls account for about 85 percent of revenues.

Companies including Bharti and Idea raised voice call prices in the middle of 2011 but then had to pare them back after losing market share to competitors.

But since then several smaller operators have either folded or cut back operations after a Supreme Court order to revoke licences gained in a disputed auction and market leaders such as Bharti, Vodafone Group Plc's local unit and Idea Cellular (IDEA.NS) have long since been expected to increase call prices.

Bharti shares ended up 5 percent, their highest level since March 5, 2012. Idea shares rose 8.4 percent to their highest level since February 4, 2008.

Shares in Reliance Communications, India's third-biggest carrier by customers, closed 2.7 percent higher. The company, which was the most aggressive in cutting rates during the price war, raised call prices in some zones last September.

(Reporting by Abhishek Vishnoi and Manoj Dharra; Writing by Devidutta Tripathy; Editing by Greg Mahlich)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage