Indian operators, regulator price floor talks imminent - Mobile World Live

Indian operators, regulator price floor talks imminent

17 JUL 2017

India’s telecoms regulator will hold a meeting with the country’s mobile operators on 21 July to hear their view on setting a minimum tariff for voice and data services, The Economic Times (ET) reported.

The Telecom Regulatory Authority of India (TRAI) reportedly asked operators to present their detailed reasoning behind supporting a price floor as well as why they don’t also support price caps.

After Reliance Jio launched 4G services in September 2016, offering a series of generous free voice and data packages, some mobile players pushed the regulator to impose a minimum price to prevent companies offering tariffs which are lower than the cost of services.

Current regulations require operators only to inform TRAI of their planned tariffs seven days before launch, so setting a floor price would be a major policy shift, ET said.

Operators’ balance sheets have been significantly impacted by a price war sparked by Jio’s entrance. Bharti Airtel and Idea Cellular posted heavy losses in the January to March quarter.

TRAI figures showed monthly ARPU in Q1 declined nearly 21 per cent from the previous quarter to INR83 ($1.29).

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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