Bharti, Idea, RCom slump on Trai call drop order

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NEW DELHI: Telecom stocks dropped up to 3 per cent in Monday's session after telecom regulator Trai (Telecom Regulatory Authority of India) reminded telecom players about paying compensation for call drops that subscribers faced recently.

In October, Trai had amended the Telecom Consumers Protection Regulations, 2015, to mandate Re 1 compensation per call drop to consumers with a cap of three call drops a day.

Shares of Bharti Airtel, the largest telecom operator, dropped 2.78 per cent to hit a low of Rs 331.05 on BSE. Idea Cellular, the third largest telecom operator, declined 2.62 per cent to Rs 139.10.

Brokerage Edelweiss Securities in a recent note said a 1 per cent call drop may impact FY17 Ebitda of Bharti Airtel and Idea by 1.1 per cent and 2.1 per cent, respectively. A 2 per cent drop would hurt Ebitda of the two telecom operators by 2.1 per cent and 4.2 per cent, respectively, assuming a 90 second average call duration.

Shares of Reliance Communications (RCom) fell 3.03 per cent to Rs 87.80. The stock had hit a 52-week high of Rs 91.80 on Friday.

The Delhi High Court last month directed the regulator not to take any coercive action against the telecom players for not implementing the latter's order until the next date of hearing, which is January 6. While the telecom industry interpreted the interim order as a 'stay' on the Trai order, the letter sent by Trai sought to suggest otherwise, The Economic Times reported.


source:-

http://m.economictimes.com/markets/...trai-call-drop-order/articleshow/50434765.cms
 
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