7 years, 6 months ago

Trai states that there is no connection between mobile call connection rates and financial stress on telecom operators

Trai today rejected the argument that reduction in mobile call connection rates has any linkage with financial stress in the telecom sector. Regulator Trai today rejected argument that reduction in mobile call connection rates has any linkage with financial stress in the telecom sector, saying the charges are not meant for making profit. Kapania had said recent market developments have drastically altered industry dynamics, resulting in the sector passing through a phase of severe “financial and mental stress”. Terming the regulatory and financial issues being faced by the sector as the “elephant in the room that no one is talking about”, Kapania flagged the recent cut in IUC, firm spectrum prices and high levies like licence fee and GST as big constraints.

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