TDSAT quashes Trai’s predatory pricing order in relief to Airtel, Vodafone Idea
6 years, 3 months ago

TDSAT quashes Trai’s predatory pricing order in relief to Airtel, Vodafone Idea

Live Mint  

New Delhi: India’s top telecom tribunal on Thursday quashed controversial rules on predatory pricing, in a relief for Bharti Airtel Ltd and Vodafone Idea Ltd, which had complained that the rules would benefit rival Reliance Jio Infocomm Ltd. The tribunal rejected Trai’s new definition of “significant market player”, besides sparing telecom firms from disclosing on their websites segmented offers or tariff discounts aimed at retaining customers. “Authority is required to take fresh decision on relevant issues in case of segmented offers and whether prevailing facts and health of sector would require major changes in meaning of tariff plans,” the order said. Under the new rules, Trai had also said that it would look at whether the tariff is below the firm’s average variable cost over a certain period, in addition to whether there was evidence of a specific intent to engage in predatory pricing; and if the tariff was found predatory, an operator was liable to pay a penalty of up to ₹ 50 lakh per tariff plan per telecom circle.

History of this topic

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