TRAI to bring an end to tariff war; to unveil predatory pricing rules in six weeks

The Telecom Regulatory Authority of India (TRAI) has said that it will soon release its predatory pricing rules. The new predatory pricing rules should bring an end to disruptive pricing between telecom service providers and is expected to be out in six weeks time reports ET Telecom.

TRAI Secretary, Sudhir Gupta told ET that it was coming up with a set of regulatory principles on tariff and that these would be out in little over a month’s time. He also said also said that the sector regulator was reviewing the Telecommunication Tariff Order (TTO) 1999 to deliver clarity when it comes to pricing.

The tariff war has lately become a big issue between Jio and rival telcos. The blame game never seems to end with Bharti Airtel on one end and Jio on the end. The two telecom service providers had recently locked horns where Sunil Mittal owned Bharti Airtel lost the case which blamed Mukesh Ambani owned Jio of anti-competitive tariffs.

Prior to this, it was Jio who went to TRAI to penalise Bharti Airtel for violating tariff rules, hinting that some of its plans misled customers.

However it is the shift in technology over the past decade that calls for a change in the rules. Gupta told ET that “technology changes have engineered a shift from voice to data” which has now forced TRAI to review the regulatory principles for tariffs, that were designed back in 1999.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

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