Floor Prices Will Be Fixed After Normalcy Gets Restored in Telecom Sector: Trai Chairman

Trai Chairman RS Sharma has addressed the telcos and stated that floor price would be fixed after the lockdown is lifted and normalcy is restored in the telecom sector

By May 26th, 2020 AT 1:58 PM

The Trai or Telecom Regulatory Authority of India has once again declined the request of telecom operators to set fixed floor pricing in India. Telecom operators like Bharti Airtel, Vodafone Idea, Reliance Jio has been facing financial distress due to the AGR crisis and lockdown period, which was announced by the government to fight Coronavirus. As reported by ET Telecom, Trai Chairman Ram Sewak Sharma stated that floor prices would be fixed after the nationwide lockdown is lifted and normalcy is restored in the telecom sector. He also stated that Trai is aware of the financial health of the industry, and it will protect the interest of consumers and ensure the growth of the sector.

ARPU of Telcos are Lowest in the World: COAI

The Cellular Operators Association of India (COAI) penned a letter to Trai Chairman dated May 21, 2020, and stated that telecom operators have been facing massive financial burden which has declined the ARPU of the telcos. Currently, ARPU of the Indian telecom operators is the lowest as compared to the world. To ensure the telecom sector gets back in the same position and the financial distress fades away, COAI has urged the Trai to set up floor price soon. Trai Chairman Sharma also stated that the regulatory body is open for discussion regarding the matter of floor price.

Telcos Urged Trai to Fix Floor Price for Data Services Soon

The outbreak of COVID-19 disrupted the normal functionality of the telecom industry. Since the government of India announced the lockdown period to combat the deadly virus, the demand for data services increased drastically in the period. All the big companies announced work from home for their employees to ensure their safety. Telecom operators nearly witnessed a 20 % increase in data consumption in the lockdown period. As the demand for data increased suddenly, telecom operators are facing a huge load of network towers. However, all the telcos have been doing their best to ensure seamless data services in the lockdown period. Telecom service providers have already urged Trai to fix a floor price for data services. Also, the group has requested Trai to set up an online process for open house discussion on the matter. However, Trai feels that a physical discussion will lead to higher ecosystem participation.

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Prithvionam jeesAm Recent comment authors
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sAm
sAm

then what about fixation of floor quality of service?
Govt will auction spectrum at the highest prices and again force subscribers to pay higher amounts. Isn’t this violation of consumer rights?

City
Siliguri
Operator
Jio,Vodafone
DTH
d2h, hathway
onam jee
onam jee

very true question asked by u. also, if the floor price is fixed, then every recharge should be having its own validity, not depending upon any other plan.
for e. g. if one gb data is fixed for 10 or 20 rupees, and someone do rc for one gb data, he need not be having any other plan necessary. like base plan or plan validity or service validity only plan.
every rc must be free from any validity restrictions of other rc.

Prithvi
Prithvi

+1 on that sAm. I am not siding with either COAI or TRAI but I think fixing Floor Pricing would enable the telecom operators to plan ahead better. So fix it subject to certain conditions like providing a plan to pay dues considering whatever best time limit & aspects of that payment plan, maintaining higher QoS & ethical values, etc. If they mess up .. again .. renew the Floor Pricing – keep this as a condition as well.

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