Telecom Tribunal Asks TRAI to Defend Predatory Pricing Rules, But Denies Stay Despite Telco Appeal

The recent social club on 'predatory pricing' by TRAI has just aggravated the condition of the incumbent telecom operators who have been suffering due to Jio's competitive war in terms of tariffs. And while telcos, Airtel and Thought Cellular, recently resorted to challenging the guild in the telecom tribunal, the step hasn't brought any relief.

Despite the pleas seeking firsthand relief, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has ruled that information technology will not grant an interim stay on the guild enforced past TRAI. TDSAT has instead asked the telecom regulator to list reasons bankroll its conclusion of imposing the predatory pricing regulation and why it shouldn't put a stay on the regulation. It has likewise asked the two operators to keep their petitions prepare for a review afterwards TRAI'southward response.

Bharti Airtel's legal defense told the Economic Times that the telecom tribunal will now hear pleas by Airtel and Thought on April 17, 2018. The two telcos, forth with Vodafone and industry representative torso COAI accept opposed TRAI's latest regulation, calling it "unconstitutional" and biased in favor of the relatively newer actor – Jio, though both TRAI and Jio counterattacked by calling the allegations flawed and absurd.

Telecom Tribunal Asks TRAI to Defend Predatory Pricing Rules, But Denies Stay Despite Telco Appeal — Courtesy: VCCircle

Back on Feb 16, TRAI had ruled that it will fine telcos ₹fifty lakh per plan for engaging in commercial activities with the intention of smothering competition in a specific circle. It specifically targets telecom companies which have a marketplace share of more than xxx percent in the operating circle, leaving the field open for Reliance Jio to engage in a toll war, since Jio does not accept the requisite marketplace share in the circles, whereas incumbent telcos do.

Telcos must ensure that their tariffs are non below the average variable cost every bit per TRAI's calculations on the footing of the plan's benefits. Prior to this order, predatory pricing primarily divers collusion amidst telcos through low interconnectivity usage charges to shut out new players, but this condition has besides been revised now with TRAI setting the charges.

Moreover, one-time TRAI chief Rahul Khullar joined leading telecom players in opposing the regulation and recently claimed that regulation was unfair and favors Reliance Jio more than than other operators. He blamed the current TRAI chief for not looking at free services offered by Jio that gave it a strategic advantage over others along with a significant atomic number 82.