Now, Reliance Jio goes after ‘poor’ subscribers of Airtel, Vodafone Idea

In the past month, Vodafone Idea Ltd’s shares jumped by 20% twice, in two consecutive trading sessions on both occasions. The first was when the Telecom Regulatory Authority of India suggested it might rethink the abolition of interconnection usage charge (IUC) from January 2020. Then again, last week, in the backdrop of rumours of an increase in tariffs by Reliance Jio Infocomm Ltd.

But these hopes have come to nought. If IUC stays, it will certainly be a positive for Vodafone Idea, but a mere band-aid in the overall scheme of things.

The news, which sent the company’s shares down 16% in the past two trading sessions, and shares of Bharti Airtel Ltd by about 6% earlier this week, was Reliance Jio’s announcement of a sharp increase in the subsidy offered on its 4G feature phone.