Predatory pricing rule stayed

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

In a relief to older operators — Bharti Airtel, Idea Cellular and Vodafone — the TDSAT on Tuesday stayed the new definition of ‘Significant Market Player’ (SMP), while directing that no penalty 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 said in its order. “This interim arrangement shall continue until further orders in this regard,” it added.

‘Details may be sought’

The tribunal 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, the Telecom Regulatory Authority of India 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.