Cell operators petition Trai on Reliance plans

Cellular operators have sought intervention by Trai to restrain Reliance Infocomm  (RIC) from offering predatory tariffs in its new unlimited talktime plans claiming this was non-compliance of the regulator's order.

Plan 700 of RIC offers unlimited talk time to Reliance phones across India and Plan 435 offers unlimited talk time to Reliance phones across Chennai-Tamil Nadu, Kolkata-West Bengal and Mumbai-Maharashtra circles, Cellular Operators Association of India (COAI) said in a letter to Trai.

Reliance's tariff plans, by offering unlimited talktime to its own customers across different service areas, are in violation of the authority' s tariff order as notified in its 33rd amendment. "These tariffs are predatory as the same tariff and rates are not transparently available to the other access providers who are its competitors," the letter said.

"We believe that by offering such tariffs, Reliance is squeezing the margins of its competitors as it has lowered its retail tariffs of competitive services in the downstream market while not extending this facility to its competitors for wholesale prices (carriage charges) in the upstream market", the letter added.

The association has sought intervention of the authority to direct the immediate withdrawal of the above plans.

The 33rd amendment to the telecommunication tariff order dated December 8, 2004 clearly states that any differential tariff assuming the nature of vertical price squeeze will not be permitted and service providers shall conduct a self-check of existing tariffs in view of the above guidelines.