Telecom stocks ease on TRAI directive to compensate for call drops

Shares of select telecom companies were trading lower after the Telecom Regulatory Authority of India (TRAI) on Friday said that telecom services providers will have to compensate users for dropped calls.

Users will be compensated Re 1 for each call drop, limited to three dropped calls daily per user. Compensation for postpaid subscribers will be adjusted against the next monthly bill. (CLICK HERE FOR THE FULL REPORT)

In addition, service providers will have to send detais of dropped calls to the subscriber within four hours of the event via SMS. The regulator said it would review the guidelines on call drops after six months.

Bharti Airtel was down 1.8% while Idea Cellular dropped nearly 3%. However, Reliance communications was up nearly 3%.