Telecom regulator TRAI has rejected Telecom Commission’s contention that free promotional offers allowed by it are responsible for the industry’s falling financial health and lower licence fee payments to the government.
“As per TRAI Act, tariffs are under the purview of TRAI. If anyone has an objection to tariff orders, they are free to approach the telecom tribunal TDSAT,” a TRAI official said.
TRAI is also expected to take the line that government’s objective cannot be revenue maximisation. “Higher tariffs can lead to greater accruals for the government from licence fee, but there is social obligation. So, revenue reduction should not been seen with a myopic view, but in the context of larger policy objectives and long-term interest of consumers,” the source, who is familiar with the development, said.
Stressing that competition in the telecom sector had resulted in better tariffs and services for consumers, the source said, “competition may be disruptive, but it also leads to cheaper tariffs for consumers”.
