2G reserve price tariff impact higher in metros: TRAI

According to Telecom Regulatory Authority of India (TRAI), 2G reserve price tariff impact is higher in metros, reports CNBC-TV18. It says, 2G reserve price tariff impact is higher in A-category circles.

It further says, Delhi needs 15 paise tariff to restore profitability, 10 and 20 paise increase to improve profitability. The telecom regulator says, tariff hike will restore pre-impact profitability.

There are notable differences between TRAI analysis and of private telcos. TRAI's approach is focused on cost per minute and private companies couched conclusion in terms tariff impact.

TRAI says, it is not clear how private companies have concluded tariff increase. TRAI has moved well beyond, using more sophisticated model. Private analysts continue to rely on original TRAI report.

Industry associations have not provided any detailed modelling.