Telcos suggest TRAI to impose floor price for voice and data services

Top telecom players have suggested telecom regulator Telecom Regulatory Authority of India (TRAI) for imposing a floor price for voice and data services.

Telcos suggest TRAI  to impose floor price for voice and data services

"Some of the telcos raised the issue of operators offering below-cost tariffs to consumers, and said it could hurt the financials of the industry, TRAI, Chairman RS Sharma said.

He said, "at the moment we have heard both the views..but how we move forward on this idea, that we will have to discuss among ourselves."

The regulator has all rights to fix the tariff rates.

Meanwhile, Cellular Operators Association of India (COAI), Director-General, Rajan S Mathews has recently told Gizbot that the telecom industry has lost about 20 to 30 percent of revenue due to Reliance Jio's free services. Earlier, before Jio came into the game there were losses but year over year revenue was increasing.

Rajan also pointed out that 2016- 17 was the first year in the history of telecom industry that total revenue of the industry has declined.

When asked about, whether Jio was the reason behind losses, Rajan replied free "offers by one company is the principal reason behind it."

In a recent past, India Ratings and Research (IndRa) firm also said that Indian telecom industry has lost around 20 percent revenues due to free services being offered by Reliance Jio.

It says, smaller telcos may not be able to sustain cash burn by operating independently and are looking for exit options.

On the other hand, Jio recently said that telecom operators are not investing in new technology and instead leveraging their balance sheet for financial woes in the industry.



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