GOVEGOVERNMENT OF INDIA

Ministry of Communications and Information Technology
DEPARTMENT OF TELECOMMUNICATIONS

RAJYASABHA
STARRED QUESTION NO. 286
TO BE ANSWERED ON 15TH APRIL 2010
Tariff Cuts by Telecom Operators

*286. SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of COMMUNICATIONS AND INFORMATION
TECHNOLOGY be pleased to state:

1. whether it is a fact that Telecom Regulatory Authority of India (TRAI) has decided to intervene in the recent tariff cuts offered by telecom operators by seeking information/business case/costs of operators;
2. if so, the objective thereof and the provision of TRAI Act under which it has thus acted;
3. whether TRAI believes that this is a case of predatory pricing.
4. If so, the details thereof, and
5.  if not, the reasons therefor, especially given the relatively small market size of the operators in question?

ANSWER
THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI A. RAJA)

(a) to (e) A statement is laid on the Table of the House.

STATEMENT TO BE LAID ON THE TABLE OF THE RAJYA SABHA IN RESPECT OF PARTS (a) TO (e) OF THE RAJYA SABHA STARRED QUESTION NO. 286 FOR 15TH APRIL, 2010 REGARDING "TARIFF CUTS BY TELECOM OPERATORS".

(a)           There is, at present, no proposal for intervention by Telecom Regulatory Authority of India (TRAI) in the tariff offered by telecom operators.

(b) TRAI had asked the operators to provide information, on the business models of these tariff plans as part of the tariff examination process. Regulation of Tariff has been mandated to Telecom Regulatory Authority of India (TRAI) vide the TRAI Act of 1997. TRAI, in exercise of its powers, has issued Telecommunication Tariff Order (TTO) 1999 (as amended from time to time). As per the 30th Amendment to TTO dated 16.01.2004, Telecom companies are required to report to TRA! any' new tariff for telecom services and changes in the tariff within 7 days after its implementation for information and record of TRAI after conducting a self check to ensure that the tariff plans are consistent with the regulatory principles in all respects which inter-alia include Interconnection Usage Charges (IUC) Compliance, Non-discrimination & Non-predation.

(c) As per TRAI, operators have submitted that it .may be too early to make any realistic assessment of the sustainability of these tariff offers or the actual impact on the overall revenues since the tariff plans have been in the market only for few months.

(d) Does not arise in view of (c) above.

(e) TRAI had asked operators to provide information as part of tariff examination process and this include operators (list is placed as Annexure) with both big and small market shares.

Annexure

Following is the list of operators who were asked to provide information on the recently introduced tariff plans: -

1. Mahanagar Telephone Nigam Limited
2. Tata Teleservices Limited and Tata Teleservices (Mah.) Limited.
3. Sistema Shyam Teleservices Limited.
4. Unitech Wireless Private Limited
5. Reliance Communications Limited.
6. Bharat Sanchar Nigam Limited
7. Bharti Airtel Limited.
8. Vodafone Essar Cellular Limited
9. Idea Cellular Limited
10. Dishnet Wireless Limited (Aircel)
11. HFCL Infotel Limited
12. Loop Telecom Private Limited
13. S Tel Private Limited