'Now second is the new minute'-Telecomm stocks tumble

Telephone Regulatory Authority Of India made second billing mandatory. Tata communications was far ahead in this regard, their docomo gsm service was for runner and they started one second billing. Now TRAI made it mandatory.This is a good move for the customer and will attract more and more customers. When 3G come into effect there will be even more participation.But which is a bad news for the major telecom players. After the collapse of Airtel-MTN deal the stock plunged yesterday. The bad omen spread for all telecom players.

Idea stock down around 10%,Airtel and Tata down by 10.5%, Tata communications the lest affected only plunged by 2.15%. Traders expect the earnings of these players will be down.

TRAI's move is a boon to mobile phone customers.Tariff rates will decrease in short term.Reliance already announced rate cut. More competition is expected in the telecom sector.

 

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http://www.moneycontrol.com/news/cnbc-tv18-comments/trai-to-make-per-second-billing-must-telecom-stks-tumble_417844.html