Reliance Jio Wants Floor Pricing To Be Applicable To All Operators: Report

TRAI is all set to introduce minimum pricing for calls and data. The regulator is also discussing it with all stakeholders. But, both MTNL and BSNL has recently asked the regulator to exempt them from floor pricing, as they have less than 15 percent market share in the telecom industry.

However, Reliance Jio opposes these comments from the telecom operators (BSNL and MTNL) and said that there will be no free calls on the other network.

"We also oppose the BSNL/MTNL suggestion on an exemption from the floor when the market share based on VLR subscriber is less than 15 percent, as the same is totally untenable, (and) would, in fact, promote inefficiencies and the intended objectives would not be met if the revised tariff regime is not implemented uniformly across all operators," Reliance Jio was quoted by Economic Times.

According to the TRAI data, BSNL has 10.26 percent, while MTNL has only 0.29 percent of the market share. Reliance Jio has 32.14 percent share, and it has now become the largest operator in the country.

Currently, operators decide the call and data prices, and that's the reason all of them want TRAI to come up with new norms for floor pricing. The development comes after all operators are facing a financial crisis due to free calls and unlimited data.

Meanwhile, the Internet and Mobile Association of India (IAMAI) said that it is illogical TRAI to intervene in the matter. The firm believes that it will not fix anything as the sector is under crisis.

"In order to correct this, regulators must identify and remove unfair cost advantages in the forms of spectrum fees, interconnection charges, etc," IAMAI said. Adding to that, "The floor price will need to be based on the cost of the provision of service."