Telcom Shares Tumble After Reliance Jio Sensation

Reliance Jio, the latest entrant into Indian Telecom sector announced the details of its commercial launch earlier today. Reliance Group Chairman Mukesh Ambani also revealed the tariffs of Jio in which they are going to offer free unlimited voice calls and lowest ever tarrif of data which is as much as 50 Rupees per GB.

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This is said to be one of the lowest tariffs ever in the World and on expected lines, the shares of incumbent Telecom Companies tumbled after the announcement. Idea Cellulars Shares almost dropped by 9% and is trading at 52 weeks low. Bharti Airtel Shares also lost up to 8.99%. This is one of the biggest fall for the companies over the years.

The shares are expected to fall further as Reliance Jio is going to create a sensation. Starting from September 5th, Jio will also allow porting of other company users to its network as its commercial operations begin. Incumbent Telecom Companies are expected lose a significant customer base which will further complicate their future.