TRAI’s amended rules on voice & SMS-only tariffs may drive churn, industry-wide tariff hikes: Analysts

NEW DELHI: The Telecom Regulatory Authority of India’s (TRAI) latest amendment rules could drive an increase in churn among entry-level subscribers to voice-and-SMS-only plans, or compel the industry to undertake broad-based price hikes, according to analysts.

As per scenarios modelled by analysts at Morgan Stanley, the migration of entry-level subscribers to voice and SMS only plans may lead to slight average revenue per user (ARPU) and revenue dilution.