TDSAT Overthrows Previous Order by Trai on Predatory and Competitive Pricing by Airtel and Vodafone Idea

According to a new report, Bharti Airtel and Vodafone Idea, the two of the top three telecom operators will now be able to take a sigh of a relief thanks to the new the order passed by Telecom Disputes Settlement and Appellate Tribunal (TDSAT). This new order by TDSAT quashes the provisions pertaining to predatory pricing and discounted tariffs which were enforced earlier by the Telecom Regulatory Authority of India in February this year. As per a mint report, the TDSAT had remarked that the regulator cannot impose a penalty and had urged the regulator to reconsider its decision within six months.

  • Make Telecom Talk My Trusted Source
  • Source of Google
  • Source of Google

airtel-vodafone-idea-tdsat-predatory-pricing

Previous Order by Trai Over-ridden by TDSAT

Previously, the order which was passed by Trai had mandated that Airtel and Vodafone Idea disclose segmented offers or discounted tariffs to the regulator. While Trai had given this order, the incumbents had argued that revealing the segmented offers would mean helping the rivals as most of the times these offers are trade secrets of the company. The telcos had urged the regulator into the direction of not forcing them to disclose these segmented offerings.

TDSAT, in an order dated December 13, said, “Segmented offers and discounts offered in the ordinary course of business to existing customers without any discrimination within the targeted segment do not amount to a tariff plan and therefore need no reporting in the manner prescribed for regular tariff plan.”

TDSAT in its order said that instead of reporting all segmented discounts or tariffs within the set cap of 25, Trai would be able to call for details about any segment discount which it receives complaints about. Back in February, the regulator had mandated that the telecom operators list the segmented discounts or tariffs on their website which are aimed at retaining customers. The Trai had set a penalty of Rs 5,000 for each day of delay with the max cap of the penalty being Rs 2 lakh.