But if you ask me, I am not sure what TRAI's problem is. Big Bazaar gives free sugar, and
Google is giving its cloud platform free for one year in India. And as the article clearly states, predatory pricing applies only for the dominant operator, not for a startup. This is, if you ask me, pure BS policy by TRAI.
@sushub they will then complain that it is 'below cost' 'predatory etc'.. This thing will ultimately end in competition commission. Why is the TRAI intervening is what I don't understand.
Read this part
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"If Reliance Jio offers its 303 plan at Rs 75 per month, that would imply a price of around Rs 2 per GB, which the rivals are likely to argue is ‘below cost’.
In other words, the company cannot sustain its
business if it prices data at Rs 2 per GB and is therefore providing it below cost, they could say.
Jio could counter that BSNL is offering a truly unlimited 3G connection at Rs 1,099 per month — under which 1 GB would cost less than Rs 2.
RIVALS AND DOMINANCE
But it is the remaining two conditions that they could have some trouble applying to this case.
The second condition is that Jio’s offer of 1 GB per day for four months for Rs 303 must threaten the existence of rivals like Bharti Airtel, Idea Cellular and Vodafone India.
This is something that they will find hard to prove, as these companies are still making profit and even if they are pushed into the red for a period of four months, they are unlikely to go out of business.
Finally, the
third condition is that Jio must be in a ‘dominant position’ in the telecom market in India."
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AVOID knows they can't win in a court of law, so they just try to use their lobbying power with banks and government. What a shame.
