TRAI To Set Framework On Predatory Pricing

Telecom regulatory authority of India, according to a report in Economic Times, will bring in new norms on pricing in the next 45 days. Ever since Reliance Jio launched its service a war of words has ensued in the telecom industry regarding predatory pricing. With both incumbent and the new comer alleging malpractices on one another.

 

TRAI has been under pressure both to end the fued and also to check downward slide in Government’s revenue from Telecom sector. Now according to a report in Economic Time, TRAI is reviewing Telecommunication Tariff Order 1999.

Telecom watchdog plans announce a set of new rules to oversee tariffs fixed by service providers and ensure transparency in the process. “We will come up with a set of regulatory principles on tariff in about 45 days,” Trai Secretary Sudhir Gupta told The Economic Times.

Move also becomes important as revenue from Data segment has grown many fold in the last few months and is expected to overtake voice revenue in coming months. Telecommunication Tariff Order 1999 is voice focused and there is need to review that in light of new realities of the sector.

The move comes after telecom majors Bharti Airtel, Vodafone and Idea accused new entrant Reliance Jio of predatory pricing.

While Airtel had approached the Competition Commission of India to penalise Mukesh Ambani’s Jio for offering anti-competitive prices to customers. In April, Jio had alleged violation of pricing regulations and misleading customers through false marketing of some of its plans.

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