In the wake of leading private telecom companies like Airtel, Idea and Vodafone, complaining against the predatory pricing by Reliance Jio, the TRAI has issued definition for predatory pricing. This definition is given by making an amendment to the "Telecommunication Tariff order".
According to this, a tariff will be considered predatory, if in a “relevant market”, a telecom operator with over 30 per cent market share, offers services at a price which is below the average “variable cost”, with a view to reduce competition or eliminate the competitors in the “relevant market”, as per an amendment made by TRAI in the Telecommunication Tariff order.
Under the new rules, TRAI will impose financial disincentive of up to Rs 50 lakh per circle on operators if their service rates are found to be predatory in nature.
(Source : PTI dated 27-02-2018)