TRAI Might Drop Plans To Review Floor Pricing Of Prepaid And Postpaid Packs

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TRAI is reportedly planning to drop its proposal to review the floor prices of prepaid and postpaid plans, as the health of the sector is improving. The development comes after the Supreme Court gave its verdict on adjusted gross revenue dues.

 
TRAI Might Drop Plans To Review Floor Pricing

Notably, telecom tariffs come under forbearance, which means operators are free to increase tariffs whenever they want too. That's why the government and regulator do not interfere in any kind of fixing or setting floor pricing.

 

The floor pricing matter has been the bone of contention and it was started by the TRAI chairman RS Sharma but was not completed due to the ongoing pandemic. In the past, Rahul Khullar, the ex-chairman of TRAI has initiated a consultation on net neutrality but later on, it was completed by RS Sharma.

Furthermore, TRAI new chairman PD Vagehla is likely to look after the matter or see that this issue requires consideration or not. The Telecom Regulatory Authority of India chairman is likely to take a different strategy or approach towards the matter.

Airtel And Vodafone-Idea Wants TRAI To Decide The Floor Pricing

Meanwhile, both Airtel and Vodafone-Idea still want TRAI to take a decision on the floor pricing as they want to increase the tariff rates to restore the financial situation. It is worth mentioning that Airtel and Vodafone-Idea have asked the regulator to increase the prices of Rs. 30 to Rs. 35 per GB, while Reliance Jio wants to raise tariffs by Rs. 20 per GB.

"Given the financial pressure on the sector and the fact that ARPU and tariffs of the Indian telecom sector are the lowest in the world, floor pricing is imperative to ensure that the sector is sustainable, and is in a position to bear the deferred spectrum and AGR dues, "COAI said in a letter.

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