Business Today
Tariff War Continues
The tariff war in the telecom sector refuses to subside.
Tariff War Continues

The tariff war in the telecom sector refuses to subside. Jio upped the game recently for older telcos by launching a Rs 49 plan for JioPhone, the telco's low-cost feature phone. The plan offers unlimited voice calling and 28 gigabytes of data over 28 days. In retaliation, Airtel and Vodafone are offering 1.4 GBs of data per day - and unlimited calls - for Rs 199 and Rs 198 per month, respectively. Just when everyone was expecting Jio to mellow down after an aggressive start, it has done exactly the opposite. Jio's no-holds-barred fierceness has started to unsettle more than just telcos.

In a recent report, Kotak Institutional Equities noted that "even as the company's [Jio's] actions are suggestive of a drive to domination and willingness to be as aggressive? our challenge is to figure out what level of domination Jio is seeking to achieve this makes Bharti's fair valuation a more-than-tricky exercise limits our ability to figure out a reasonable basis to value Bharti and Idea."

Manu Kaushik

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