Vodafone CEO Slams 'Unfair' TRAI Predatory Pricing Rules; Says It Favours Reliance Jio
TRAI recently issued new guidelines to telecom operators regarding 'predatory pricing', which forbade operators from lowering prices to fight competition in telecom circles where they take a 'pregnant marketplace power'. Violation of the policy could result in fines upwards to Rs. 50 lakh for the offending telcos. And India's second largest telecom visitor Vodafone's CEO Vittorio Colao believes the new rules favour Reliance Jio and the visitor could be looking at challenging information technology in court.
In a press meet at MWC 2018, Vodafone's primary didn't mince words in conveying his disagreement on predatory pricing rules. "We believe Trai's predatory pricing regulation favours Jio and it should exist legally challenged. We want off-white competition. We are not in agreement with that Trai regulation", he was quoted as saying past The Economic Times.
Sudden Predatory Pricing Rules
The Vodafone head revealed that the company's revenue in Bharat has dwindled in the face of cut-throat competition, and TRAI'south new regulation might further dent it. "Out of the bluish, magically, a law or regulation comes … It sounds like you have to fight somebody with hands tied at the back. That's (dominion) not fair … nosotros want fair competition. Then, we are not in agreement with that specific regulation" he was quoted as saying past Business Standard.
The Vodafone executive said the entry of Reliance Jio began the price war across the telecom industry, thanks to freebies and the ultra-depression pricing of its voice and data plans. And as a reaction, all major players in the manufacture resorted to similar pricing at the detriment of revenue, simply the regulation puts incumbent telecom majors at a disadvantageous position due to its very terms and weather.
Does It Favour Jio?
TRAI's ruling states that a telco volition only be considered to have "significant market power" just if information technology has a 30% share in a relevant market. This particularly targets incumbent players and Reliance Jio, which is steadily increasing its market place share, cannot be investigated for predatory pricing. And so one can run across why Airtel, Vodafone, Thought and others are not happy with the new regulation, which clearly targets incumbents.
Source: https://beebom.com/vodafone-ceo-trai-unfair-predatory-pricing-reliance-jio/
Posted by: nashgrea1959.blogspot.com
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