Reliance Communications shares jump over 8% on hike in mobile call rates

MUMBAI: Shares of Reliance Communications today surged about 8.5 per cent after the company said it has increased the mobile phone tariff by up to 25 per cent.

Shares of the mobile phone carrier finally settled at Rs 62.05, up 7.82 per cent on the BSE. At the NSE, the scrip closed 8.52 per cent higher at Rs 62.40.

RCom increased the base tariff by 25 per cent to 1.5 paisa per second from 1.2 paisa per second as the "competitive intensity tapers off and input costs rise."

RCom will implement these new rates across India in next 30 days and new customers seeking the connection will have to pay the increased base tariff.

"Current prices are clearly unsustainable for a profitable growth. There is a clear evidence on the ground of competitive intensity coming down.

"From now on we are focusing on average margin per user and not average revenue," RCom President and CEO for Wireless Business, Gurdeep Singh said.

Meanwhile, the stock market saw a robust trade with the BSE benchmark Sensex ending at 18,752.83, up 403.58 points or 2.20 per cent.