Predatory pricing rule stayed

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Tuesday put an interim stay on some clauses of the TRAI’s recent regulation for tariff principles on predatory pricing.

In a relief to older operators — Bharti Airtel, Idea and Vodafone who had appealed against the regulation — the TDSAT stayed the new definition of ‘Significant Market Player’ (SMP), while also adding that no penalty would be levied on telecom operators for not complying with the new norms for tariff reporting.

“…the clauses in the impugned order related to the reporting requirement and definition of SMP are stayed,” the TDSAT order said. “This interim arrangement shall continue until further orders in this regard,” it added.

‘Details may be sought’

It added that while the regulator was entitled to ask for details of segmented discounts or concessions offered to subscribers for analysis, “no penalty shall be imposed on that basis till further orders are given in the ongoing appeals” by Bharti Airtel and Idea Cellular.

In its tariff order issued in February and intended to ensure transparency, non-discrimination and non-predation, TRAI had said the definition of SMP for the purpose of predatory pricing would be based on just the subscriber base and gross revenue and not subscriber base, turnover, switching capacity and volume of traffic, as determined earlier.