Telecom operators urge Trai to fix a minimum floor price for free voice call and data services

16 July 2017, 05:54 PM

The entry of Reliance Jio has changed the economic picture of whole telecom sector.As it enters the market, it provided free data and voice call.This prompted many customer to change their network to Jio and as many did so, it left other telecom player in a big loss. For sustaining in the free service market, many others such as Airtel, forced to give free service at less price.

Now some telecom operators are urging Telecom Regulatory Authority of India(TRAI), to fix a 'minimum floor price' for both data and voice calls. TRAI will meet all service provider on 21st of july to seek their views and arguments on the 'minimum floor price'.

Currently  the tarrifs are under forbearance, operators virtualy have free hand in fixing the rates and reports plans to Trai in 7 days.
The demand for imposition of a floor price first came up last month, at industry's meetings with the regulator and separately with the  inter-ministerial group (IMG).

Highlighting the growing financial stress on operators, Idea Cellular, in its presentation to the IMG had said that the industry has been witnessing losses and negative returns driven by below cost tariffs that are "predatory".

If Trai  implements minimum floor price, free data and voice services can come to end.

First Published: Sunday, July 16, 2017 05:26 PM
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