Welcome Guest Login | Register | Site Map | | Make TelecomTiger my homepage     
Telecom News
Enterprise |  Policy & Regulation |  Mobiles & Tabs |  Corporate |  VAS |  People Movement  |  Technology  |  LTE
Policy & Regulation
Telecom tribunal junks Trai's predatory pricing order
TT Correspondent |  |  14 Dec 2018

The telecom tribunal has rejected the sector regulator’s order that had changed the definition of significant market power (SMP) to identify predatory pricing, offering huge relief to India’s incumbent carriers who had said the new rules only benefitted Reliance Jio Infocomm.

The Telecom Disputes Settlement & Appellate Tribunal (TDSAT), in a hard-hitting judgement Thursday, said the regulatory order that gave a new entrant like Jio pricing flexibility till it acquired 30% share of the market’s subscribers or revenue, “appeared an unnecessary abdication of its regulatory powers by the Telecom Regulatory Authority of India” in the context of tariff conditions and their enforcement.

“If a new entrant needs to be protected from the rigors of non-predation, it can be done through provisions like `Welcome Offer’ and `Promotional Offer’ as availed by Reliance Jio, but to allow freedom from requirements of non-predation till acquisition of 30% of total activity in a given market, prima facie appears an extreme step by Trai,” the tribunal said in its verdict.

The tribunal further said, it would be improper to “adopt a definition (read: of SMP) that provides “artificial protection to a telco, who may have the capacity and intent to destabilise the sector through predatory pricing before it attains the defined status of SMP”.

The upshot of TDSAT’s verdict is that older carriers Bharti Airtel and Vodafone Idea can continue offering customised discounts to retain subscribers and won’t be bound to report those to the regulator or make it public. Besides, Jio too will be as accountable to be called out for predatory pricing as its two incumbent rivals, with the removal of the 30% subscriber or revenue market share criteria.

The tribunal has asked the sector regulator to reconsider the provisions of its predatory pricing regulation within six months.

    
Other Stories in this Section
 mail this article    print this article    Show and Post comment
14 Dec 2018(IST)  
Whitepaper
Maintain Business Continuity with Cisco ASR 9000 nV Technology
It is a virtual chassis solution where a pair of ASR 9000 routers acts as a single device by maintaining a single contr...read more
Simplify Your Network with Cisco ASR 9000 nV Technology
With the new Cisco Network Virtualization (nV) technology in the Cisco ASR 9000 Series Aggregation Services Routers, se...read more
Cisco Small Cell Solution: Reduce Costs, Improve Coverage
It is designed to address the challenge of mobile service coverage and to expand network capacity...read more
Other Stories of the Day