RS Sharma Says Trai to Introduce New Rules on Tariffs

Indian telecom regulator, Trai, will soon come up with a new rule aimed at defining whether a particular tariff by any telecom service provider is transparent, non-predatory and non-discriminatory or not. “Transparency, non-discrimination and non-predatory, these are three broad principles which have to be adhered to… what will be the hallmarks or attributes of such tariffs, that is what these principles will decide,” Trai chairman R.S. Sharma told Mint newspaper.

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The rules, expected to be introduced within the next two weeks, will put an end to the controversy started after the entry of Reliance Jio with the disruptive welcome offer and the Happy new year offer which according to incumbent telcos violated the rules. Bharti Airtel and Idea Cellular had also moved the Telecom Disputes and Settlement Appellate Tribunal against the regulator and the Mukesh Ambani-led telco over the extension of free services by the 4G entrant.

According to the existing regulations, any promotional offer by a telecom operator must be limited to 90 days.

However, the Mukesh Ambani-led telco had written to the regulator contesting the view of its rival telcos like Airtel and Idea, and subsequently said that its free data offer was not predatory. The 4G entrant had then also told the regulator that the Happy New Year offer “can in no way be construed as an extension of the first offer as current regulations consider two plans as distinct even if there is only a small difference in the terms and conditions.”