Devesh
Core Member
Aiming to control the eroding balance sheets, several telecom companies have suggested to the sector regulator that a floor price be fixed for both data and voice services.
But is a floor feasible? Experts remain divided even as industry strongly bats for it.
Industry stakeholders have suggested a floor price to stop any player from offering tariff below that level. This issue largely rose after Reliance Jio came in with a free offer for voice and data, thus disrupting the industry's tariff regimes.
However, the concept of floor price may be in contradiction to the 'forbearance' clause of tariff regulation which requires that it should not intervene on tariff issues, which should be left to market forces or competition.
If the players switch to a floor price, then with every new tariff offer they would need to seek Telecom Regulatory Authority of India's (TRAI) permission.
Reliance Jio: Telecom tangle: Is floor price for voice, data services feasible?, Telecom News, ET Telecom
But is a floor feasible? Experts remain divided even as industry strongly bats for it.
Industry stakeholders have suggested a floor price to stop any player from offering tariff below that level. This issue largely rose after Reliance Jio came in with a free offer for voice and data, thus disrupting the industry's tariff regimes.
However, the concept of floor price may be in contradiction to the 'forbearance' clause of tariff regulation which requires that it should not intervene on tariff issues, which should be left to market forces or competition.
If the players switch to a floor price, then with every new tariff offer they would need to seek Telecom Regulatory Authority of India's (TRAI) permission.
Reliance Jio: Telecom tangle: Is floor price for voice, data services feasible?, Telecom News, ET Telecom