Reliance Jio's disruptive pricing prompts analysts to slash target price of listed telecom players
Idea shares were down nearly 3 percent in early trading, while India's largest wireless player Airtel slid less than a percent
India's established telecom players saw their share prices dip further on Friday, after analysts slashed price targets on some of them, and warned that the launch of new rival Reliance Industries' Jio venture is set to be much more disruptive than earlier imagined.
"Free voice is key to making Reliance Jio's integrated plans much more compelling cost-wise than those of peers," stated JPMorgan analyst Viju George in a note to clients.
Reliance Chairman Mukesh Ambani, India's richest man, took the wraps off the Jio network on Thursday touting free calls and rock-bottom data prices that sent shares of established players into a nosedive on fears of an all-out price war.
"RJio has disrupted industry pricing more than we imagined, with consequences for incumbents likely more difficult than we expected," said George, who trimmed his price target on Bharti Airtel to Rs 290 from Rs 335, and that on Idea Cellular to Rs 85 from Rs 100.
Idea shares were down nearly 3 percent in early trading, while India's largest wireless player Airtel slid less than a percent. Shares of Reliance Communications, the telecom venture run by Mukesh's younger brother Anil Ambani, also fell 1.7 percent.
"We have been concerned over Jio's launch for a couple of years, and the event is turning out to be as negative as we had feared," Credit Suisse analyst Sunil Tirumalai wrote in a note.
Tirumalai said he believed Jio's tariff structure, if it resonates with customers, could usher in the entry of bundled voice and data plans in the country.
World Emoji Day 2021: From ':-)' in the 2000's to Soundmojis over two decades later, we have come a long way
Facebook has introduced a new Soundmoji library where users will find sound effects and "famous sound bites" with the 2D emoticon.
Lenovo Aware uses the PC’s built-in camera to detect a person’s eye contact with the device and body language.
On the occasion of 30 years of economic liberalisation, the chairman of Reliance Industries Ltd said there was a need for 'Indian model' of development and exuded confidence that the country can be at par with the US and China by 2047