TRAI floats consultation paper seeking views on floor, ceiling price for voice and data services

The Telecom Regulatory Authority of India (TRAI) has today released a consultation paper on “Tariff Issues of Telecom Services”. The authority had floated this consultation paper so that all the stakeholders in the value chain can get an opportunity to fully participate in the deliberations and give their views on such crucial issues affecting consumer interest.

TRAI floats consultation paper seeking views on floor, ceiling price for voice and data services

TRAI said that in the last few months, many concerns have been raised about the health of the Indian telecom sector and the need to fix a floor price for telecom services. The authority told that it has received a detailed representation from Cellular Operators Association of India (COAl) dated 3rd December 2019 seeking fixation of a floor price by the Regulator.

TRAI has so far observed a policy of forbearance in respect of telecom tariffs for valid reasons. It gives the service providers the freedom and flexibility to design their tariff offerings as per the demands of the market. It gives free play to the forces of healthy competition and has resulted in an exponential growth in the Indian telecom sector in the past two decades.

However, the regulator has added “Ensuring the provision of ever-increasing data consumption and a good Quality of Service requires a lot of investment in maintaining and improving telecom infrastructure. Fast pace of technological changes in the sector require huge capital investments. Telecom sector is the infrastructure provider for many other sectors of the economy. Thus, making sure that the telecom sector remains healthy and its orderly growth are equally important.”

The written comments on the issues raised in the consultation paper are invited from the stakeholders by 17th January, 2020 and counter-comments by 31st January, 2020.

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