In a breather to established telecom players Airtel and Idea Cellular, telecom tribunal TDSAT on Tuesday granted an interim stay on the reporting requirement of 'segmented offers' and the new definition for ascertaining 'significant market power' for predatory pricing introduced by Trai. The two telecom companies had alleged that the order issued by the Telecom Regulatory Authority of India (Trai) was biased against them and put new entrant and arch rival Reliance Jio at an advantage.
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in its interim order, however, placed a qualifier on the reporting requirements, saying Trai will be entitled to ask for details of segmented discounts or concessions for analysis but that no penalty shall be imposed on that basis till further orders are given in the ongoing appeals by Bharti Airtel and Idea Cellular.
Segmented offers refer to plans that operators offer individual customers as part of the strategy to retain them or counter the promotion effort of rivals. The clauses in the impugned order related to the reporting requirements and definition of SMP are stayed, TDSAT said.
Airtel and Idea Cellular had moved the TDSAT against Trai's order on predatory pricing, issued on February 16 this year that changed the definition of significant market player (SMP). The regulator had also said that operators will have to provide services to all subscribers availing the same tariff plan in a non-discriminatory manner.
The old operators had flagged the revised definition of Significant Market Power (SMP) that now excludes parameters like traffic volume and switching capacity. This exempted Reliance Jio from being a significant market player, giving it the freedom to offer discounts which the established players could not.
TDSAT in its order observed that the appellants have expressed deep apprehension that if the reporting requires disclosure of names etc of their customers, or other sensitive commercial information, disclosure of the same may adversely impact their business interests and the rival service providers may gain if they have access to such information.
TDSAT further stated that it would not be necessary for operators to disclose the details of their customers or any business-sensitive information, and that they can withhold such information provided they offer a written explanation for the same, to TRAI. If the respondent (Trai) feels that relevant and necessary information is being withheld without just and good reasons, the matter may be bought to the notice of the tribunal for appropriate directions, the order stated.