Non-predatory rules: Slightly negative for incumbents but Jio to gain

The Mukesh Ambani-owned company had also complained to Trai about incumbents offering segmented offers to different customers

The non-predatory tariff rules announced by sectoral regulator Trai could adversely impact incumbent operators like Bharti Airtel, Vodafone and Idea Cellular as the new norms restrict their pricing flexibility, whereas new entrant Reliance Jio will be left untouched at least till the time it achieves a market share of 30 per cent.

According to the order by Telecom Regulatory Authority of India (Trai), a tariff can be considered predatory if a significant market player (SMP) offers services at a price, which is below the average variable cost in a "relevant market" with a view to reduce competition or eliminate competitors.