Shares of telecom companies dived on Friday after Mukesh Ambani launched the JioPhone at the Reliance Industries Annual General Meeting 2017. Following the possible threat from the mobile business disruptor Reliance Jio, investors sentiment soured as there may be possibilities that the new JioPhone may dent the businesses of the existing telecom and cable TV operators. The most valuable telecom company as of now, Bharti Airtel slipped nearly 4% just after the announcement to the day’s low of Rs 403 while Idea Cellular fell as much as 7.01% to Rs 88.2 on BSE.
Other telecom stocks which came under pressure after the announcement are Reliance Communications down 2.45% to Rs 23.85, Tata Communications down 2.31% to Rs 651.9, Tata Teleservices Maharashtra fell 2.4% to Rs 7.33. Media company stocks also plummeted soon after the oil-to-telecom conglomerate Reliance Industries Ltd announced its cable TV. Shares of Dish TV India tumbled as much as 8.56% to Rs 75.75, Sun TV Network stocks declined 4.8% to Rs 788, Eros Media fell 4.1% to Rs 224.25 and Hathaway Digital & Datacom also plunged 4.87% to Rs 33.2.
Today, Mukesh Ambani has launched the JioPhone at the Reliance Industries AGM 2017. Touted as ‘India ka smartphone’, the JioPhone is a 4G VoLTE enabled feature phone. Ambani at the launch said, “Today, Jio is going to reinvent the conventional feature phone. Let me introduce India ka Intelligent SmartPhone.” Mukesh Ambani led Reliance Industries is all set to hold its Annual General Meeting (AGM) today.
Jio will give them access to UNLIMITED DATA on the JioPhone: If these users were to consume a similar quantity of data on other operator’s network, they would spend Rs 4,000 – 5,000 per month. Jio will provide this at ONLY Rs 153 per month, that is one-thirtieth, 3% of the existing price.
The JioPhone will always have free voice calls. From August 15, the JioPhone will come with free unlimited data. Ä similar quantity of data on any other operator’s network would cost up to Rs 5000 a month,” Ambani said, adding that the same will cost JioPhone users just Rs 153 a month, including the cost of the phone. There will be a weekly plan of Rs 54 and a two-day plan of Rs 24 with all the same features. There will be a Rs 1,500 refundable security deposit with the phone for 36 months. Effectively, this makes the phone completely free, Ambani said.