Telecom stocks ring a happy tune

Yesterday, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on set aside a regulation brought by the Telecom Regulatory Authority of India (Trai) in February which prohibited incumbent operators from providing segmented offers (discounts which are not part of tariff package) to their high-Arpu (average revenue per user) subscribers.

The TDSAT also did away with predatory pricing, which prevented operators having 30% or more subscriber and revenue market share from providing below-cost tariffs, while allowing new operators to offer such tariffs till they reached the threshold mark.

Vodafone and Bharti Airtel can heave a huge sigh of relief while it could get a bit sticky for Jio as it’s tariff can be challenged as “predatory” since it does not have the over 30% subscriber or market share cover.

Vodafone Idea is up today almost 6% at Rs.36.90 while Bharti Airtel too jumped up 6.5% to Rs.322.25.