TRAI to Meet All Telecos to Discuss ‘Tariff Floor Price’ on July 21

The Telecom Regulatory Authority of India (TRAI) has summoned all the telecom service providers on July 21, to know their views on ‘minimum floor price’ for data and voice tariff plans.

A section of incumbent telecom operators have demanded the minimum floor price for both data and voice calls. The implementation of something alike might mean an end to the freebies of this market.

The operators will be questioned by the regulators to give the detailed view of their individual ‘minimum floor price’ for tariffs, including the mathematical logic behind the formulation of such rates.

The operators currently have the freedom to fix their own rates and report the same to TRAI within 7 days of launch. If an incident of floor plan setting take place, then it is likely to bring a change to this regime as well.

During the course of the meeting, the operators will have to present a complete and detailed presentation and every bit of logic behind their plans. Questions regarding the upper limit of tariffs are also likely to be discussed.

This demand for imposition of floor price had sprung up at the industry’s meeting with the regulator and also with the inter- ministerial group separately (IMG).

There is an accelerating growth of financial stress on operators due to the free plans and services offered by some telecom operators. The industry is also facing a loss and debt in its economy.

Services offered by Reliance Jio might also be blamed. They are in a promotional spree of offering free plans to its customers. The incumbent operators have blamed the same. The debt of the telecom industry presently stands at Rs. 4.6 lakh crore.

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