Telecom Regulatory Authority of India (TRAI), the telecom regulator, this week ruled out an instant obligation of least floor cost for data and voice services. The regulator took this decision saying that the telecom sector has reached an agreement that it is not a feasible plan.
The move came after R S Sharma, Chairman of TRAI, along with superior regulatory administrators had a meeting with representatives of all telecom firms for a thorough discussion on the problem. “Most of the operators, previous month, had lifted the problem of fixing floor cost for services in telecom sector. We had a thorough discussion this week and there is an agreement that, for time being, we do not require to chase the thought of floor cost,” Sharma said to the media after the meeting in an interview.
Consequently, there will no additional consultation or discussion on the problem, he further added while talking to the media. “The agreement is that fixation of floor cost for services in telecom sector is not a feasible plan,” he further added. At the time of the meeting, Idea Cellular seemed to have whacked for fixation of a least floor cost via a comprehensive presentation, while newbie Reliance Jio stood in opposition to the idea terming it anti-competitive and regressive.
If a least floor cost had been placed, it might have indicated an end to free samples in the market, since operators might have to keep in mind the least threshold while fixing taxes for data and voice. The tariffs are presently below forbearance. Operators almost can set up any price without any guidelines and can report plans to TRAI within 7 Days of roll out. Hence, a floor cost fixing might have also applied a change from that rule.
“The decision was that costs that are below forbearance must be maintained under forbearance for time being,” Sharma further added. All operators, whether small or large, gave attendance this week at the meeting. Sharma, on the other hand, refused to say anything on the details of the meeting.