Telecom regulator Trai on Monday shot off a letter to anti-trust watchdog CCI asserting its power and expertise to deal with matters relating to competition and predatory pricing in telecom tariffs.
Countering Competition Commission of India’s contention over jurisdiction on market dominance and predatory pricing, Trai emphasised that it has the wherewithal to examine all matters -- even competition issues -- falling within its tariff-related powers, an official said.
Trai is reviewing rules of tariff assessment, which among other issues, deals with promotional offers and predatory pricing. The consultation paper in this regard is being widely seen as a flashpoint between the two regulators.
In the 2-page letter to CCI Chairman Devender K Sikri, the Telecom Regulatory Authority of India (Trai) said that as telecom regulator, its core responsibility is to look at tariffs.
While Trai has adopted the principle of forbearance, there are reporting requirements involved and the regulator has to ensure competitive behaviour is maintained by the all telecom operators in the interest of consumers, Trai has argued.
The provisions of the Trai Act too require it to facilitate competition and promote efficiency, the official said citing the correspondence.
Trai has stressed that it has experience and capability to examine all matters, even competitive issues, falling within the purview of tariffs.
The telecom watchdog held that it had earlier in 2006 too initiated a consultation on tariff plans with lifetime validity that had dealt with predatory pricing issues.
“Trai has in the past and will continue to deal with such issues in a careful and nuanced manner,” Trai said in the letter on Monday.
The telecom regulator outlined the dynamic nature of the sector and pointed out that special expertise is required to examine complex tariffs, including bundled promotional offers.