TRAI issues consultation paper on floor price for telecom operators
The TRAI has released a consultation paper asking all telecom operators and involve parties on if a floor price should be considered to revive the ailing telecom sector and what the modalities should be if that were to be considered. CNBC TV18 was the first to report the story on November 15.
The TRAI has released a consultation paper asking all telecom operators and involve parties on if a floor price should be considered to revive the ailing telecom sector and what the modalities should be if that were to be considered. CNBC TV18 was the first to report the story on November 15.
While the paper is a detailed 49-page document, the key issues and questions raised for discussion in the paper are as follows:
Telecos and other stakeholders can submit their written comments by January 17, 2020 and counter-comments by January 31, 2020.
In its press release, TRAI has said, “TRAI has so far observed a policy of forbearance in respect of telecom tariffs for valid reasons. It gives the service providers the freedom and flexibility to design their tariff offerings as per the demands of the market.
It gives free play to the forces of healthy competition and has resulted in an exponential growth in the Indian telecom sector in the past two decades. Most economists also advise against the fixation of price 1 controls as it leads to economic inefficiencies, consumer harm, market distortions and reduced innovation.
However, ensuring the provision of ever-increasing data consumption and a good Quality of Service requires a lot of investment in maintaining and improving telecom infrastructure. Fast pace of technological changes in the sector require huge capital investments."
First Published: Dec 17, 2019 7:40 PM IST
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