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TDSAT stays Trai's predatory pricing order: What it means for the industry

Under the older definition, a telco which has SMP could not offer a tariff, which is lower than the IUC

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Tdsat

Surajeet Das Gupta  |  New Delhi 

The stay by Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on the changes made by the Trai on what constitutes significant market power (SMP) and predatory pricing provides a big relief to incumbent operators but is a setback to Reliance Jio. Under the older definition, a telco which has SMP could not offer a tariff, which is lower than the IUC which was at 14 paisa-which included both fixed as well as variable cost.

The regulator, however, changed the definition by excluding fixed costs from the calculation. In simple term, this meant that telcos could now offer tariffs ...

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First Published: Tue, April 24 2018. 18:15 IST