TDSAT asks Trai not to seek compliance from Airtel till April 17

The telecom tribunal has directed the sector regulator not to seek compliance of its predatory pricing order, including sharing of details of all tariff plans, from Bharti Airtel till it next hears the market leader’s challenge to the new tariff rule on April 17.

Telecom Disputes Settlement and Appellate Tribunal (TDSAT) granted temporary relief to Airtel on Monday after the mobile phone operator moved an application against Telecom Regulatory Authority of India’s “inappropriate action” of seeking compliance with its tariff order, despite the company having challenged it in the tribunal and a decision was pending, lawyers aware of the proceedings said.

“TDSAT also took cognisance of the Madras High Court order,” one lawyer said.

The High Court had roughly two weeks back told Trai not to take any coercive or penal action against Vodafone India till its next hearing of a case filed by the No 2 mobile operator against Trai’s predatory pricing rule and demand that telcos put all their tariff plans on their websites, including those offered to retain individual customers.

The regulator had on February 16 issued a tariff order that mandated a new formula to determine predatory pricing. Changing the definition of significant market player (SMP), Trai gave tariff flexibility only to operators with less than 30% of the market’s subscribers or revenue. Previous SMP parameters such as volume of traffic, including data, and switching capacity, were dropped. The regulator can levy a penalty of ₹50 lakh per violation if a tariff is found to be predatory.

Trai also barred telcos from offering tariff plans to only some customers in a bid to retain them, adding that all plans must be displayed on a company’s website and made available to every user.

India’s top three operators — Bharti Airtel, Vodafone India and Idea — contended that the rules favoured Jio, which has 13-14% share of revenue and users. Airtel and the proposed Vodafone-Idea Cellular combine would each have over 30% revenue market share.

They said the rule barring provision of specific offers to retain customers was against the companies’ rights to do business. While Airtel and Idea challenged the order in TDSAT, Vodafone moved the Madras HC.

Despite its order being challenged, the Trai has kept seeking compliance of its order through written communications to Airtel, which the telco argued was inappropriate.