Telecom regulator cracks down on discriminatory pricing

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Telecom Regulatory Authority of India (Trai) on Friday directed telecom operators not to offer differential pricing to subscribers porting out from a rival firm, according to a Business Standard report. Telecom regulator’s latest move will make it difficult for telcos to offer highly discounted segmented tariffs and stop discrimination between subscribers of the same class in tariff offers. However, discounted segment tariffs being offered to own customers can still continue, the report said.

According to analysts, the move is expected to be the first step towards an across-the-board tariff hike in the industry.

Telcos push for tariff hikes to survive

Recently, telcos have taken small steps to raise tariffs. Bharti Airtel and Vodafone Idea in the last few weeks had increased tariffs in certain limited segments.

In an analyst call, it was reported that chairman of Bharti Airtel Sunil Mittal was losing patience and a tariff hike was key to survival. He further pointed to the fact that the industry can thrive if the Average Revenue Per User (ARPU) must cross Rs 200 by the end of this financial year and then to Rs 300.  Currently its ARPU is Rs 146.

VIL also pushed for a similar call, which has said that the company’s chances of raises Rs 25,000 crore from new investors depends on the industry increasing tariffs.

The two players have been pushing for a minimum floor price but the move was ruled out by the regulator. The reason was that two of the three companies have been making profits and are not selling below the cost price, according to the publication.