Restrict the period of 'promotional offers', says JS Deepak to TRAI

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Telecom Sectretary JS Deepak has written a letter to Telecom Reugulatory Authority (TRAI) of India asking it to restrict the period of 'promotional offers' by telecom players, as the government losses Rs 800 crore revenues, report ET.

Restrict the period of 'promotional offers', says JS Deepak to TRAI

"There appears to be an urgent need to revisit and review its tariff orders in the larger interest of the government revenues as well as the telecom sector," Deepak has written in his letter on February 23 to Telecom Regulatory Authority of India (Trai) chairman RS Sharma.'

The letter also explains how the government revenues from just the licence fee have fallen from Rs 3,975 crore in the June quarter to Rs 3186 crore in the December quarter of the current financial year.

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Recently, Telecom Commission has also asked telecom regulator TRAI to implement orders on promotional mobile tariffs in "letter and spirit" and review existing rules to ensure financial growth of the industry.

Ever since the Reliance Jio has launched its 4G services whole telecom industry has shaken and incumbents players are trying to cope with the situation by offering new tariff plan everyday.

As per India Ratings and Research, the telecom industry has lost about 20 percent of revenue due to Reliance Jio's free services.

India's largest telecom service provider, Bharti Airtel's has also reported decline in its consolidated net profit by more than half at Rs 503.7 crore in the October-December 2016 as compared to Rs 1,108.1 crore in the corresponding quarter of 2015-16. Vodafone too posted a decline of 4.7 percent in its India revenue.

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