Trai to review tariff rules on promotional offers, predatory pricing

These contentious issues would be debated as part of a consultation paper

Telecom regulator TRAI will review the rules of tariff assessment with regard to promotional offers and predatory pricing, issues that have triggered a public spat between Reliance Jio and incumbent operators.

These issues would be debated as part of a consultation paper on ‘Regulatory Principles of Tariff Assessment’ issued by TRAI. “The consultation paper deals with emergent issues and challenges...related to regulatory principles of tariff assessment, for example, transparency, promotional offers, disclosures and non-discrimination, adherence to the principle of non-predatory pricing, meaning of predatory pricing, relevant market, assessment of dominant position,” a TRAI statement said. The consultation “aims to bring about greater clarity in interpretation of various regulatory principles set out in the Telecom Tariff Order in consonance with the best global practices.” The industry and other stakeholders have to submit written comments on these issues by March 17, 2017.

The issues to be debated include measures that need to be prescribed by the regulator to ensure transparency in the tariff offers made by operators, and strengthening of definition relating to “non-discrimination.” TRAI has sought views on which tariff offers should qualify as “promotional offers” and the need to limit the number of such offers that can be launched by an operator in a year one after another or concurrently.

It also seeks suggestions on definition and criteria for “dominance” in relevant telecom markets.