Moneycontrol News
Telecom majors Bharti Airtel, Idea Cellular and Vodafone India might be a disappointed lot as the Telecom Regulatory Authority of India (TRAI) is likely to reject their plea to disallow voice calls below 14 paise per minute, an official told The Economic Times.
Trai reasons that these key telecom players, are already charging voice calls lower than 14 paise, or the interconnect charge, which is paid by the operator on whose network the call originates to the recipient operator.
The official further said that Trai will be responding to the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) holding onto its stance that Jio's offers do not violate any rules, and that the interconnect usage charge of 14 paise per minute is not the retail floor price.
This comes after incumbents had contested the telecom regulator's decision to allow Reliance Jio to provide free unlimited voice and data in its promotional offers starting September 2016.
"Free night calling and bundled packs offering unlimited calls are all examples of incumbent telcos doing the same," the official said.
Reliance Jio, which entered the telecom sector only recently, has already gained a subscriber base of over 100 million subscribers in a matter of six months, by providing free unlimited data and voice till March 31. Following this, it is going to price the same unlimited offers for a modest price of Rs 303 per month.
This has let to price war in the sector and widespread consolidation. While Bharti Airtel acquired Telenor's India operations, Idea Cellular and Vodafone India have decided to join hands to be able to offer more competitive prices.
However, before they resorted to consolidation, incumbents had also complained to the Competition Commission of India, accusing Jio of predatory pricing. However, Trai has cleared Reliance Industries' telecom arm of any wrong doing and said its offers are not predatory.
Disclosure: RIL, which owns Reliance Jio, also owns Network18 and moneycontrol.com
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
