TRAI: concerns over lower tariff inconsistent with policy

Telecom Regulatory Authority of India (TRA)) said that the Telecom Commission’s contention that reduced mobile voice and data tariffs by telecom service providers is leading to reduced revenues for the government and poor health of the sector may be inconsistent with the principles of public policy.

In response to a letter from Telecom Commission, the Telecom Regulatory Authority of India (TRAI) said the economic purpose of telecom regulation is aimed to maximize the overall economic growth of the sector and increase productivity.

Telecom Commission earlier said that there is a declining trend in the collection of revenue solely due to the tariff war triggered by promotional offers by service providers. Reliance Jio in September 2016 announced free voice and data offers and added 100 million to its 4G network.

“The Authority would like to inform you that he tariff regulatory regime established by TRAI since 1999 has promoted competition in the sector and has facilitated all TSPs including new entrants in the sector to offer competitive tariff to their consumers,” said TRAI.