Incumbent telecom operator’s stock plunged following Reliance Jio’s announcement of tariff plans. Jio said that over its LTE network, voice calls would be free and unlimited for all its customers and would charge Rs 50 per GB of data. Reliance Industries (RIL) shares were down 2.85% to Rs 1029.8.
Interestingly, Network18, a Reliance comapny, saw its share price fall by 3.59% to Rs 44.35.
– Airtel, India’s largest operator with more than 230 million subscribers, saw it’s stock fall to Rs 302 at around 12 PM after the announcement. Airtel’s stock had opened from Rs 330.15. At the time of writing, Airtel’s stock was down 6.89%.
– Idea Cellular’s share price was down 9.84% at Rs 84. The company’s stock had opened at Rs 93.25.
– Reliance Communications stock fell 8.63% to Rs 49.25. It’s stock had opened at Rs 54.3.
– Vodafone Group’s share price fell to £225.38, a decline of 1.94%. Markets in the UK are yet to open.
– Tata Teleservices fell 3.14% at Rs 6.17 and the stock had opened at Rs 6.49.
– Interestingly, MTNL’s stock was in the green following the announcement. MTNL’s stock was up 2.33% to Rs 21.8.
Other media stocks
A look at some of the media companies’ stock which have video streaming as a part of their strategy.
– Eros International Media increased 1.15% to Rs 219.5
– Balaji Telefilms was up 1.36% to Rs 85.55.
Note that these companies’ stock are not directly related to Reliance but may be indirectly affected with the announcement of their data tariffs.
For the June quarter, Reliance Jio said it has over 1.5 million test users on its network, the company reported (pdf) for the quarter ended 30th June 2016. It claims that the average monthly data consumption on its network is over 26GB per user per month, while the average voice usage per month is over 355 minutes per user.