The Telecom Regulatory Authority of India (TRAI) on Friday said that the industry had reached a consensus that fixing of floor price for voice and data services was not a “workable idea” at the moment, and the current regime of tariff forbearance would continue.
Two-hour discussion
“We had a detailed discussion of about two hours and the consensus at the end of the meeting was that for the time being... as of now we don’t need to pursue the idea of fixing a floor price. That is the conclusion,” TRAI Chairman R.S. Sharma said after the meeting with telcos. Last month, some telecom services providers, in a meeting with TRAI, had sought imposition of a floor price for both voice and data services. The operators had argued that telcos offering below cost tariffs to consumers over a period of time might harm the industry and its financials.
“We had promised a discussion,” Mr. Sharma said, adding that representatives of all telecom services providers attended the meeting.
He added that no further discussion or meeting on the issue was planned.
“At the end of the meeting, we all decided collectively that as of now we do not need to forgo the principal of forbearance which has been accepted and working for the last 14 years,” he added.
Under forbearance regime, operators are allowed to fix their own tariffs on grounds that there is enough competition in the market.
Mr. Sharma added that the consultation paper on introduction of 5G was “almost ready” and would be out soon.
