Idea Cellular shares rise on hike in mobile data rates in NCR region

Idea Cellular shares rose 2.5 per cent on Friday on reports that the company has increased mobile data rates by up to 100 per cent for pre-paid customers in the NCR region.

The company has doubled the price for some 2G plans, while 3G will be costlier by about 33 per cent. The new rates came into effect from June 3, 2015. The company also plans to raise data tariffs in five-six more circles in the coming days.

As per new rates, customers will now get only 1.5 GB of 2G mobile internet data for Rs 255 against 3 GB offered to them earlier at the same price.

In a bid to improve profitability, telecos have been cutting-back on discounts and freebies. Last year also, firms including Bharti Airtel, Vodafone and Idea had increased data as well as call tariffs. After the March spectrum auction, industry associations had said there would be hike in tariffs as operators have to meet commitment to the government.

The share price of the company closed at Rs 178.25, up 2.50 per cent against its previous close.

Idea Cellular, an Aditya Birla Group company, provides Global System for Mobile communications (GSM)-based wireless service at the pan-India level, is present in all 22 telecom circles.

(With inputs from PTI)