Idea wants Trai to reconsider floor-pricing on voice, data tariff

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26 Aug, 2025 12:21

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India's third largest telecom company--Idea Cellular—is keen to have regulatory body Trai reconsider the introduction of a floor price or minimum price for voice and data tariffs as such a move would help the stressed industry, reports Economic Times.

Telcos have come under financial pressure after the entry of Reliance Jio (owned by Reliance Industries) which offered voice and data services at unprecedented competitive prices.

Idea CEO Himanshu Kapania told ET that funds for investing back into the business could be generated either through reduced levies and spectrum installments, or by putting a floor pricing on tariffs.

Earlier this year, Trai had rejected the same proposal. According to a Mint report, Trai Chairman RS Sharma said Trai did not give guidance on pricing as they had a 'forbearance regime regarding tariffs for the last 14 years.'

Sharma said that telcos made the argument that if tariffs were set lower than costs, it could hurt the industry.

During the recent ‘India Mobile Congress’, the Idea CEO had mentioned high taxes, and high spectrum costs suffered by the industry as putting a strain on them. He prevailed upon the government to alleviate the strain on the sector.

“Rationalisation of taxes, a cut in the GST rate and lowering of spectrum charges...are much-needed respite that cannot wait any further," Kapania had told the media.

The relationship between Trai and older telcos (other than Reliance Jio) have been on the boil lately.

Trai has decided to more than halve the interconnection usage charge (IUC) to 6 paise per minute from next month, and eliminate it altogether from 2020.

As per an ET report, Airtel and Idea have moved the Bombay High Court, seeking a stay on the implementation of the IUC cut.

Reliance Jio has however denied charges that it would benefit from the reduction in termination charges. However, incumbents beg to disagree.

IUC is used to cover the cost of network usage when inter-network calls are placed. The access provider of the originating call pays a fee to the terminating service provider.

Trai believes slashing the prices will benefit consumers.