Highlighting the growing financial stress on operators, Idea Cellular, in its presentation to the IMG had said that the industry has been witnessing losses and negative returns driven by below cost tariffs that are “predatory”.New Delhi: Regulator Trai will meet all telecom service providers on July 21 to seek their views on minimum floor price for voice and data tariffs, as being demanded by some operators, an official has said.
The regulator will ask the operators to explain their views on minimum floor price for tariffs, and also the formulation or math for the fixing such a rate, the official said.It is also expected to ask the telcos why an upper ceiling for tariffs is not similarly justified.Also, the tariffs are currently under forbearance — operators virtually have a free hand in fixing the rates and report plans to Trai in 7 days of launch — and, hence, a floor price China nonwoven kitchen wipes Manufacturers setting, if it happens, would imply a shift from that regime.
It may be recalled that Mukesh Ambani promoted Reliance Jio had stormed into the telecom market last year, wooing customers with promotional free voice and data services. In fact, Jios promotional freebies for seven months is blamed by incumbent operators for the financial woes of the sector.6 lakh crore.Jio still offers aggressive data plans and has promised that voice calls will forever be free on its network. The industrys debt stands at Rs 4.. The demand for imposition of a floor price first came up last month, at industrys meetings with the regulator and separately with the inter-ministerial group (IMG).”
Only solution is to have floor prices for voice, SMS, and data services so mobile telecom businesses generate adequate profits to invest and then compete based on quality of services” it had said citing nations like Sri Lanka, Zimbabwe and Bangladesh which have such floors. During the meeting, the Telecom Regulatory Authority of India (Trai) will seek the rationale for the floor price demand, and has asked operators to also give detailed presentation to support their arguments.The minimum floor price, for both data and voice calls, has been demanded by a section of incumbent telecom operators, but implementing it could mean an end to freebies in the market
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