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Tariff Hikes In Telecom Are Inevitable, Morgan Stanley’s Parag Gupta Says

Price cuts by telecom operators unlikely to sustain going forward, according to Morgan Stanley’s Parag Gupta.



Banners for Reliance Jio, the mobile network of Reliance Industries Ltd., top left, and Bharti Airtel Ltd. hang outside a mobile phone store. (Photographer: Dhiraj Singh/Bloomberg)
Banners for Reliance Jio, the mobile network of Reliance Industries Ltd., top left, and Bharti Airtel Ltd. hang outside a mobile phone store. (Photographer: Dhiraj Singh/Bloomberg)

The entry of Reliance Jio brought about severe price cuts in the telecom space but those are unlikely to sustain going forward, according to Morgan Stanley's Parag Gupta.

Tariff correction at the start of the year due to the new entrant increased the pain in the industry, Parag Gupta, executive director at Morgan Stanley told BloombergQuint on the sidelines of the Morgan Stanley summit. Tariffs at current levels are unsustainable, so they have to move up," Gupta added.

Watch the interview here