Airtel, Idea move TDSAT against Trai pricing norms

The telecom tribunal on Monday gave three weeks to Trai to file its reply in a petition by Bharti Airtel and Idea Cellular challenging the regulator's latest order on predatory pricing but did not stay the contentious decision.

Trai's predatory pricing rules have sparked off a furore in the industry with the older and established telecom carriers as well as industry body COAI slamming the new norms. The Cellular Operators' Association of India (COAI) has indicated that the regulation favours Reliance Jio, and that the order has distorted the market, placing all other operators at a "serious disadvantage".

Both Telecom Regulatory Authority of India (Trai) and Jio have dubbed the allegations as baseless.

In its petition to the Telecom Dispute Settlement and Appellate Tribunal (TDSAT), Bharti Airtel said that the tariff order "virtually permits a telecom service provider who is an effective significant market player (SMPs) to indulge in predatory pricing to the severe detriment of the appellants and the other operators".

"Thus, if the impugned tariff order is not stayed then it will cause severe detriment to the appellants as it will have no means to meet the predatory pricing and consequent loss of subscribers and business by another TSP (telecom service provider),"

Airtel said seeking a stay on Trai's latest order. Airtel further argued that not staying the order would also "hamper consumer interest as they will be deprived of discounts and offers".

Last month, Trai said it will impose financial disincentive of up to Rs 50 lakh per circle on operators if their service rates are found to be predatory in nature.