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

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

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