TRAI to discuss ‘minimum floor price’ with telecom operators on July 21

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TRAI to discuss ‘minimum floor price’ with telecom operators on July 21

Regulator TRAI will meet all telecom service providers on July 21 to seek their views on ‘minimum floor price’ for voice and data tariffs, as being demanded by some operators. The minimum floor price, for both data and voice calls, has been demanded by a section of incumbent telecom operators, but implementing it could mean an end to freebies in the market.

Jio’s promotional freebies for seven months is blamed by incumbent operators for the financial woes of the sector. The industry’s debt stands at INR 4.6 lakh crores. A floor price setting, if it happens, could mean an end to freebies in the market.

The regulator will ask the operators to explain their views on ‘minimum floor price’ for tariffs, and also the formulation or math for fixing such a rate, an official said. During the meeting, the Telecom Regulatory Authority of India (TRAI) will seek the rationale for the floor price demand, and has asked operators to also give detailed presentation to support their arguments. It is also expected to ask the telcos why an upper ceiling for tariffs is not similarly justified.

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