Morgan Stanley said traffic growth is coming at the expense of operating margins as tariff wars in the sector has brought down average revenue per minute for voice calls.
The investment bank added that 3G rates have also been slashed in the past six months, while overall sequential data revenue growth is declining.
Bharti Airtel has suffered a rash of downgrades this month, sending shares to their lowest since October 2006 on August 10 after posting disappointing April-June earnings.
Bharti shares traded down marginally.
Copyright Thomson Reuters 2012