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


Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

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)

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

  • Most Popular
  • Most Shared


Asian Markets

Asian Markets

Asian stocks flat after China PMI meets expectations  Full Article 

Chinese Economy

Chinese Economy

Factory activity shrinks for 4th month; pace of decline slows   Full Article 

International Gold

International Gold

Gold hovers near 2-1/2 month lows on firm equities, fund outflows  Full Article 

GM Lawsuit

GM Lawsuit

GM seeks U.S. court protection against ignition lawsuits  Full Article 

Reuters India Mobile

Reuters India Mobile

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