TRAI rejects telcos’ demand for fixing the floor price, says government should provide relief to telcos

The Telecom Regulatory Authority of India (TRAI) has rejected telcos’ demand for fixing a floor price for voice and data tariffs.

With this, TRAI has left the responsibility of providing relief to the sector in government’s hand. As per the regulator, fixing a floor price would be objected to by the Competition Commission of India (CCI) as it would amount to TRAI being part of an industry cartel. TRAI is of the view that the government and industry should work together to put the sector back on track.

While the TRAI has expressed its inability to bring about the floor price, the Department of Telecommunications (DoT) is considering a relief package for the operators. However, the DoT needs the concurrence of the finance ministry before moving ahead.