Wait on Vodafone Idea’s premium RedX plan extended, TDSAT’s final verdict expected today

Vodafone Idea filed the plan details to Trai on November 2019 and further modifications to it were once again duly filed in May 2020.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Thursday reserved its order on an appeal filed by Vodafone Idea against regulator Trai’s directive to block its RedX plan, which offers higher data speed to its premium customers. The telecom firm has sought an interim relief as it feels that the regulator has shown “undue haste” in blocking the plan, which was present in the market for over eight months. Vodafone Idea filed the plan details to Trai on November 2019 and further modifications to it were once again duly filed in May 2020.

The Telecom Regulatory Authority of India (Trai) on July 11 had asked both Vodafone Idea and Bharti Airtel to block their plans, which give preferential network access, to select customers of premium plans. The regulator had also asked the companies to explain within seven days how it did not affect quality of services of lower denomination plans. After Trai’s directive, Vodafone Idea appealed in TDSAT, which refused to grant a stay to the firm on July 14. On the same day, TDSAT asked Trai to file its reply on the matter in 24 hours.

In its reply, Trai has refuted the claims made by Vodafone Idea that the decision to block the plan was made after a complaint from Reliance Jio. “…the Appellant has made vague allegations that Trai’s examination on a complaint from a rival of the appellant. Such allegations are vehemently denied. Jio’s complaint and the exercise undertaken by Trai are two separate aspects,” Trai said in its reply, a copy of which was seen by Financial Express.

Trai said it sought details about the RedX plan from Vodafone Idea after considering information received from Bharti Airtel, which too had launched a similar plan for its platinum customers on July 6. Trai took cognizance of the press release issued by Airtel and asked the company to provide complete details. On July 7, a meeting between Airtel and Trai officials took place through video conferencing during which Airtel stated that similar offers have been provided by Vodafone Idea under RedX plan.

“That considering the information received from Bharti Airtel of similar offer by the appellant, complete details of offer of RedX plan was sought from the appellant vide Trai’s communication dated July 8 by July 9, 2020,” Trai said.

On July 8, Trai received a complaint from Reliance Jio against Bharti Airtel and Vodafone Idea regarding “priority of network”.

“It is usual practice to seek comments of telecom service providers whenever any complaint is received. The reply is always examined and when it is noticed that there is likely violation of the regulatory framework, then only some action is initiated. In this case also, the matter was thoroughly examined before seeking information from the appellant,” Trai said.

Trai also refuted the charges made by Vodafone Idea that existing subscribers of the plan will be impacted. The regulator said its directions categorically states that as regards the existing subscribers who have already been enrolled, the company is required to protect the interests of such subscribers. With regard to taking new subscribers, Trai said pending review, it would be unwarranted.

Sharing the net addition of subscribers for the RedX plan, the regulator said Vodafone Idea has submitted that in May, there was a net addition of 15,225 subscribers while the addition for June 2020 was only 3,104, which is negligible for an entity like Vodafone Idea.