Trai not to intervene in tariffs, floor price for now

The Logo of Telecom Regulatory Authority of India. DH photo

With large telecom operators planning a rate hike in the coming days, Trai is unlikely to make an immediate intervention on tariff issues, including fixation of any floor price as of now despite industry's demands, sources said.

Sources aware of Trai's views on the issue said that making any fresh move on floor prices or intervention does not make sense at this point, given that operators have already announced plans to hike tariffs in the coming days.

Sources said any move by Trai now may "derail" the process that has been initiated at the operators' end. The regulators consider intervention to be the "last resort".

As operators have already announced that they will increase tariffs, Telecom Regulatory Authority of India (TRAI) will wait to see how the entire situation unfolds.

There is no decision on floor price as of now, and any call on the issue will be taken only at a later date.

Sources said that floor price was among key issues flagged by the industry representatives at the meeting held at Trai on Wednesday. A section of the industry wanted a regulatory intervention by Trai on the issue.

It is pertinent to mention here that telecom operators have announced plans to hike pricing in the coming days, although they have not indicated just how much the tariffs will increase.

In a statement issued on November 18 to announce a price hike, Airtel had mentioned: "We understand that Trai is likely to initiate a consultation for bringing rationality in pricing in the Indian mobile sector which has been operating at prices that have been eroding the viability of the sector". 

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