The Telecom Regulatory Authority of India (TRAI) has been mandated by the TRAI Act, 1997 to regulate the tariffs offered by the Telecom Service Provider for its various services. The telecommunications sector in India has witnessed several changes in the past few years in terms of the tariff offerings of various telecom service providers. This has not only resulted in an exponential increase in the use of telecom services but has also resulted in the tariffs of telecom services in India being amongst the lowest in the world.

In the last few months, many concerns have been raised about the health of the Indian telecom sector and the need to fix a floor price for telecom services. TRAI has so far observed a policy of forbearance in respect of telecom tariffs for valid reasons. It gives the service providers the freedom and flexibility to design their tariff offerings as per the demands of the market. It gives free play to the forces of healthy competition and has resulted in an exponential growth in the Indian telecom sector in the past two decades. Most economists also advise against market interventions by the regulator in tariff fixation.

However, ensuring the provision of ever-increasing data consumption and a good Quality of Service requires a lot of investment in maintaining and improving telecom infrastructure. Fast pace of technological changes in the sector require huge capital investments. Telecom sector is the infrastructure provider for many other sectors of the economy. Thus, making sure that the telecom sector remains healthy and its orderly growth are equally important.

Considering this aspect, a consultation paper on “Tariff Issues of Telecom Services” has been issued on 17th December, 2019 to invite comments from all the stakeholders, on various issues relating to tariff in telecom sector.

The consultation paper on “Tariff Issues of Telecom Services” has been uploaded on TRAI’s website (www.trai.gov.in). The written comments on the issues raised in the consultation paper are invited from the stakeholders by 17th January, 2020 and counter-comments by 31st January, 2020.

Click here to read the consultation paper on “Tariff Issues of Telecom Services”