Trai Rejects Top Telcos’ Floor Price Demand for Voice and Data Services

India’s telecom regulator has reportedly rejected top telcos like Idea Cellular’s proposal for the establishment of a floor price for voice and data tariffs in the country. RS Sharma, the chairman of the Telecom Regulatory Authority of India (Trai), said that the regulator decided that fixing a floor price was not a workable idea. “Prices, as they are under forbearance, should continue as they are,” Sharma was quoted as saying by media.

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Notably, incumbent telcos during their meetings with the regulator and separately with the inter-ministerial group (IMG) had urged the telecom regulator to set a floor price for voice and data services. The demand, upon approval, would have put an end of free services for customers in India. The 4G entrant had been offering free services in India, which triggered an intense price war which had hurt the revenue and profitability of the established carriers.Jio had however opposed the need for the floor price.

In the country, tariffs for telecom services are currently under forbearance and telcos are free to decide on consumer offerings and report plans to the regulator within seven days of launch. Sharma further told media that “there wouldn’t be any further discussions on this.”

Top telcos wanted a floor price to put an end to the free services which were being offered by new entrant Reliance Jio Infocomm who had triggered an intense price war which had hurt the revenue and profitability of the established carriers. Following the introduction of free services, incumbent telcos were forced to cut the cost of data services bundled with free voice service in the country.

Jio, which gained 100 million users in record time due to free services, faced criticism from incumbents which termed such offers against norms. The regulator however previously cleared Jio’s free voice and data offers and said they don’t violate pricing norms. The matter is currently in the court and the telecom tribunal, the TDSAT.

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34 Comments on "Trai Rejects Top Telcos’ Floor Price Demand for Voice and Data Services"


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Airtel pro
July 22, 2017 2:24 pm 2:24 PM

TRAI should declare lock out permanently against this three idiots for looting public for many years and support fair business for any policy which will be beneficial to customers and TRAI should stop as mute watchdog but act from time to time in the interest of general public

July 22, 2017 8:26 pm 8:26 PM

haha ! then JIO will raise price of 309 plan to 3000 ! 😀

Sunil kumar saxena
July 22, 2017 10:05 am 10:05 AM
These Idea/Voda/Airtel cartel was silent when it were charging/looting Indians at its will. Never before they asked to fix minimum charges. In fact they were interested in charging maximum by creating privileged class. Voda’s Red phone scheme was one of example. Airtel Mittal turned silently one of richest Indian in 10-15 years is example how exorbitantly they earned from this one time investment business. Now when big brother Reliance Jio entered the fray and changed business model i.e. reach masses-earn less from more users, the old cartel is licking dust. I am of the firm view that in this open… Read more »
July 21, 2017 11:25 pm 11:25 PM
What is predator in that….phone with 1500 deposit, 153 monthly pack….which is on lines of Avoid ARPU. Thing is avoid group sleeping for last 5 years. Suddenly in Panic state for solutions. China is world’s manufacturer. Just now India is transforming as doimaint player with make in India. Slowly India manufacturing will be indegenious with make in India. Your china logic sucks and hold no value. Qualcomm, spreadtrum and almost 80 Percent made in China. With time each will be made in India unlike present assembly. Now Foxconn is making those phones in India. You don’t understand what good this… Read more »