New Delhi: Vodafone Idea<\/a>’s complaint against Bharti Airtel<\/a> and Reliance Jio<\/a>, accusing the two bigger rivals of indulging in predatory pricing<\/a> by giving unlimited 5G data, has put the industry regulator in a bind, officials aware of the matter said.
While there are no rules that bar a telecom operator from offering unlimited plans, the Telecom Regulatory Authority of India<\/a> (Trai<\/a>) may take some action if it feels that the market dynamics are being hurt due to such plans, they said.
But a former Trai<\/a> official said any direction to stop offering unlimited plans may need to be preceded by a consultation process to avoid being challenged in courts.
A final decision is yet to be taken on the matter, officials cited above said.
One of the options being considered by the authority is to direct Jio and Airtel<\/a> to stop their unlimited 5G data offerings, or restrict them for a time period, they said.
Another option is to mandate fixing a data limit, one of the officials said.
“The telcos have seen an average usage of around 8 GB on 5G. They can any time fix the limit to 400-500 GB, but it is unlikely to be utilised fully by customers as 5G is still not the dominant technology,” the official added.
Airtel<\/a> and Jio, in separate responses to the regulator’s questions, have denied any wrongdoing. Both have said they can’t be called out as 5G currently has a very small user base with the network rollout currently under progress, officials said.
A senior official at one of the two telcos said his company will abide by any direction. “When one (telco) offers unlimited data, the other has no option but to follow suit.”
The issue around predatory pricing<\/a> gained prominence back in 2016, when Airtel and Vodafone Idea<\/a> accused Jio of predatory pricing after the new entrant announced promotional plans that gave voice and data for free for months at a stretch.
The anti-trust body had then rejected allegations of the incumbent players.
New Delhi: Vodafone Idea<\/a>’s complaint against Bharti Airtel<\/a> and Reliance Jio<\/a>, accusing the two bigger rivals of indulging in predatory pricing<\/a> by giving unlimited 5G data, has put the industry regulator in a bind, officials aware of the matter said.
While there are no rules that bar a telecom operator from offering unlimited plans, the Telecom Regulatory Authority of India<\/a> (Trai<\/a>) may take some action if it feels that the market dynamics are being hurt due to such plans, they said.
But a former Trai<\/a> official said any direction to stop offering unlimited plans may need to be preceded by a consultation process to avoid being challenged in courts.
A final decision is yet to be taken on the matter, officials cited above said.
One of the options being considered by the authority is to direct Jio and Airtel<\/a> to stop their unlimited 5G data offerings, or restrict them for a time period, they said.
Another option is to mandate fixing a data limit, one of the officials said.
“The telcos have seen an average usage of around 8 GB on 5G. They can any time fix the limit to 400-500 GB, but it is unlikely to be utilised fully by customers as 5G is still not the dominant technology,” the official added.
Airtel<\/a> and Jio, in separate responses to the regulator’s questions, have denied any wrongdoing. Both have said they can’t be called out as 5G currently has a very small user base with the network rollout currently under progress, officials said.
A senior official at one of the two telcos said his company will abide by any direction. “When one (telco) offers unlimited data, the other has no option but to follow suit.”
The issue around predatory pricing<\/a> gained prominence back in 2016, when Airtel and Vodafone Idea<\/a> accused Jio of predatory pricing after the new entrant announced promotional plans that gave voice and data for free for months at a stretch.
The anti-trust body had then rejected allegations of the incumbent players.
This time around, Vi has accused both Jio and Airtel of indulging in predatory pricing. Being significant market players (SMP), both these companies cannot offer 5G for free, and that too for an unlimited time, thereby accelerating the subscriber churn at cash-strapped Vi, the struggling telco argued.
But Jio and Airtel are not flouting any rules, officials said.
Unlimited plans, both wired and wireless, are commonplace in the telecom industry with all the players offering them in some form or the other.
Since it’s an industry-wide phenomenon, so far, no one, including the regulator, has thought about restricting the usage as it could be an anti-consumer move.
The issue around unlimited plans first arose in 2012, when some consumers complained about telcos reducing internet speed after utilising certain quantum of data. To address that and to protect interests of the consumers, the regulator had directed all telcos to clearly specify any fair usage policy (FUP) to the customers.
In 2016, Trai issued another set of directions, which superseded the 2012 rules, over proper disclosures for FUP to consumers. Under FUP, it should be clearly communicated that a plan mandates a certain speed for a certain amount of data consumption, after which the speed will be reduced. Both directions were issued to safeguard consumers, so that they were aware about their data consumption.
However, the directions did not talk about unlimited data plans without any FUP, which means telcos are free to offer truly unlimited data plans.
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