Telecom Regulator (TRAI) has finally ruled out the demand by some telcos to fix a floor price for voice and data services.
Telecom Regulator Authority of India (TRAI), Chairman, RS Sharma said: "during the meeting, a consensus had emerged that fixing a floor price was not a workable idea and as of now, there was no need for it."
"The consensus is that as of now, we don't need to pursue the idea of a floor price. We had detailed discussions for over two hours, There will be no further discussion or consultation on the issue," Sharma said.
The whole issue came to lime light after, Reliance Jio announced its entry into telecom sector with free services and low tariffs which further added stress on telecom sector.
To recall, all operators in June this year have suggested telecom regulator to imposing a floor price for voice and data services
In fact TRAI, Chairman said "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.
He added,"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.