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HomeNewsTelecom NewsTDSAT rejects TRAI’s predatory pricing order
Friday, 14 December 2018 07:11

TDSAT rejects TRAI’s predatory pricing order

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On 13 Dec, the telecom tribunal (TDSAT) trashed the telecom regulator TRAI’s order that had changed the definition of significant market power (SMP) to identify predatory pricing. The new order has offered huge relief to India’s incumbent carriers who had said the new rules only benefitted RJio.

The Telecom Disputes Settlement & Appellate Tribunal (TDSAT) said the regulatory order that gave a new entrant like Jio pricing flexibility till it acquired 30% share of the market’s subscribers or revenue, “appeared an unnecessary abdication of its regulatory powers by the Telecom Regulatory Authority of India” in the context of tariff conditions and their enforcement.

The TDSAT said: “If a new entrant needs to be protected from the rigors of non-predation, it can be done through provisions like `Welcome Offer’ and `Promotional Offer’ as availed by Reliance Jio, but to allow freedom from requirements of non-predation till acquisition of 30% of total activity in a given market, prima facie appears an extreme step by TRAI.”

TDSAT said, it would be improper to “adopt a definition (read: of SMP) that provides “artificial protection to a telco, who may have the capacity and intent to destabilise the sector through predatory pricing before it attains the defined status of SMP”.

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