Telecom Regulatory Authority of India, the telecom regulator, this week drove a letter to Countering Competition Commission of India (CCI), the anti-trust watchdog, asserting its expertise and power to cope with matters associating to predatory and competition pricing in telecom market.
CCI’s argument over jurisdiction on predatory pricing and market dominance, TRAI emphasized that it has the ability to examine all matters, even including competition problems, falling within its powers related to tariff, a spokesperson claimed to the media in an interview. TRAI is evaluating regulations of tariff assessment, which among other problems, copes with predatory pricing and promotional offers. The discussion document in this regard is being extensively viewed as a flashpoint amid the 2 regulators. In the two-page letter to Devender K Sikri, the Chairman of CCI, TRAI claimed that as a telecom regulator, its fundamental duty is to observe tariffs.
While TRAI has accepted the principle of patience, there are reporting needs concerned and the regulator has to make sure that competitive behavior is preserved by the all telecom players in the interest of users. In addition to this, the telecom regulator this week ruled out any instant obligation of least floor cost for data and voice services. The regulator took this decision saying that the telecom sector has reached an agreement that it is not a feasible plan.
The move came after R S Sharma, Chairman of TRAI, along with superior regulatory administrators had a meeting with representatives of all telecom firms for a thorough discussion on the problem. “Most of the operators, previous month, had lifted the problem of fixing floor cost for services in telecom sector. We had a thorough discussion this week and there is an agreement that, for time being, we do not require to chase the thought of floor cost,” Sharma said to the media after the meeting in an interview.
Consequently, there will no additional consultation or discussion on the problem, he further added while talking to the media. At the time of the meeting, Idea Cellular seemed to have whacked for fixation of a least floor cost via a comprehensive presentation, while newbie Reliance Jio stood in opposition to the idea terming it anti-competitive and regressive.