Vodafone Idea jumps 11%, hits upper circuit after TRAI seeks deadline review for zero IUC

Vodafone Idea jumped over 11 percent intraday on September 19 after the Telecom Regulatory Authority of India (TRAI) released a consultation paper seeking a review of the deadline to bring down the interconnect usage charge to zero.

The regulator on September 18 floated a fresh consultation paper to see if there is a need to revise the applicable date for scrapping IUC, given the continuing imbalance in inter-operator traffic. The paper also seeks to discuss with stakeholders what parameters should be looked at to decide on an alternate date, if any.

The biggest relief will be for Vodafone Idea because the telecom operator earned 30 percent of its overall EBITDA in the first quarter from IUC, said a report by global research firm Citi.

As of July, TRAI’s latest subscriber data report, Vodafone Idea has 380 million subscribers followed by Reliance Jio with 339.8 million and Airtel with 328.5 million subscribers.

At 1130 hrs, Vodafone Idea Limited was quoting at Rs 5.43, up Rs 0.57, or 11.73 percent. It has touched an intraday high of Rs 5.66 and an intraday low of Rs 4.87.

The stock witnessed spurt in volume by more than 1.35 times and hit upper circuit of Rs 5.34 per share on the BSE.

Source : http://tiny.cc/3yi0cz

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