Telecom stocks fall after Trai’s reminder on call drops
Shares of Bharti Airtel fall 4.10% to Rs326.60, Idea Cellular drops 5.01% to Rs135.70 and Reliance Communications retreats 6.52% to Rs84.65
Mumbai: Shares of telecom companies retreated on Monday after PTI reported that the Telecom Regulatory Authority of India (Trai) had written to all operators, reminding them to start compensating subscribers for call drops.
In Intra-day trade shares of Bharti Airtel Ltd fell as much as 5.7% to ₹ 321.30, Idea Cellular Ltd fell 5.6% to ₹ 134.9 and Reliance Communications Ltd (R-Com) dropped 9.06% to ₹ 82.35.
Shares of Bharti Airtel Ltd closed 4.10% lower at ₹ 326.60, Idea Cellular Ltd 5.01% down at ₹ 135.70 and R-com dropped 6.52% to ₹ 84.65.
The BSE Telecom index fell 3.20% to 1,383.33 points and the benchmark Sensex fell 2.05% to 25,623.35 points.
“Trai has written to all telecom operators reminding them about call drop regulations with expectations that they have put all mechanisms in place to comply with them," the PTI report said.
According to the latest amendment to the Telecom Consumer Protection Regulations notified by Trai on 16 October, telcos will have to credit ₹ 1 to a user for every call drop, with a cap of ₹ 3 per day.
The Cellular Operators’ Association of India, a lobby group, had moved court against the Trai order. The Delhi high court has asked the regulator not to take any coercive action till 6 January, Mint reported
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