Shares of Vodafone Idea on Thursday jumped over 12 per cent after telecom regulator Trai invited public views to review the January 1, 2020 deadline for service providers to end interconnect usage charges.
The scrip zoomed 11.93 per cent to close at Rs 5.44 on the BSE. During the day, it climbed 16.87 per cent to Rs 5.68.
At the NSE, shares jumped 12.37 per cent to close at Rs 5.45.
Shares of Bharti Airtel gained 0.58 per cent to Rs 337.70 on the BSE.
Telecom regulator Trai on Wednesday invited public views to review the January 1, 2020 deadline for service providers to end interconnect usage charges.
A telecom operator pays for connecting calls of its subscribers to the company on whose network a call is made. Currently, an operator is required to pay 6 paise per minute as mobile call termination charges, called interconnect usage charges (IUC), which is proposed to be made nil from January 1, 2020.
Telecom operators with large number of subscribers gain from IUC as most of the calls are made within their network while net payout for service providers with lower subscriber base is higher.
Last date for comments on the paper is October 18 and for counter comments it is November 1, 2019.
"Bharti/VIL stand to gain 4 per cent/20 per cent on Q1 FY20 consol EBITDA. On the other hand, RJio might see a 15 per cent negative impact on EBITDA if the decision is deferred," according to a report by Motilal Oswal Securities.
A delay is positive for Bharti/Vodafone Idea Ltd (VIL), it added.
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