Idea Cellular rings a pretty tone
Idea Cellular is ringing a good tone today. Currently up almost 3% at Rs.179, the stock is at its intra day high point. Its 52-week high stands at Rs.203.90.
The spotlight on the company is on news reports that it has hiked mobile data rates by 100% for pre-paid customers in the NCR region. It has doubled the price for some 2G plans and 3G has been increased by 33%. These new rates, have already come into effect from 3rd June.
This makes Idea the first telecom company to hike rates post the spectrum auction in March. The news is that in the coming days, Idea will hike rates in some 5-6 circles more. Obviously, rate hike means increased revenue for the company though it may mean more cost for the customer. Thus the market is happy that Idea's revenue stream will get better in the coming days, effect of which would be felt in Q2FY16.