TDSAT raps TRAI on tariff hike

The Telecom Dispute Settlement and Appellate Tribunal has pulled up the telecom regulator TRAI for not intervening in the recent tariff hike by three major telecom players -- Bharti Airtel, Vodafone Essar and Idea.

NEW DELHI: The Telecom Dispute Settlement and Appellate Tribunal has pulled up the telecom regulator TRAI for not intervening in the recent tariff hike by three major telecom players -- Bharti Airtel, Vodafone Essar and Idea.

Replying to a petition by NGO, Telecom Watchdog, on last month's hike in charges by the operators, TRAI said, "We are constantly watching this issue... and still the charges are within the ceiling limits.”

"What are you watching. This is not a simple bird watching. You have to intervene," a TDSAT bench headed by Justice Arun Kumar told TRAI.

Telecom Watchdog has alleged that the three telcos have formed a cartel and increased local call charges by 20 per cent along with 20-32 per cent increase on ISD calls.

The tribunal also said it wanted a positive response from the regulator on this issue.

On this, TRAI counsel said that he would take instructions from the regulator on what they could do in the matter.
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TRAI has put the tariffs under forbearance policy, through which it monitors the level of charges, after a persistent downward trend due to competition in the past.

The NGO further alleged that the trio was even violating the "principle of economics of sale" as they were charging higher tariff in Delhi in comparison to Chennai.

In Chennai, Airtel charges Rs 0.99 for local call, while in Delhi it is Rs 1.20. For an SMS it charges Rs 0.05 in Chennai while it is collecting Rs 1.20 in Delhi.

Vodafone Essar was charging Rs 1.20 in Delhi for a local call as compared to Rs 0.99 in Chennai. For STD, the operator was collecting Rs 2.65 in Delhi as against Rs 2.40 in Chennai, the NGO contended.
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Meanwhile, the tribunal has asked the NGO to furnish a list of consumers whom it was representing. As per the TRAI Act, TDSAT could entertain only such petitions which are filed by a group of consumers.

The tribunal has listed the matter for the coming Wednesday for hearing.
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