The Telecom Regulatory Authority of India (Trai) has rejected the Telecom Commission's contention of free promotional offers by Reliance Jio and said that the measures taken by it to facilitate competition have not only significantly contributed towards growth of the sector but resulted in data tariff reduction, thus benefitting customers. Rejecting the commission’s contention, it also said that this approach is "inconsistent" with the principles of public policy and canons of public economics.
Disagreeing with the Commissions suggestion that the regulator has not implemented its own decision and directions on promo offers in letter and spirit, the authority pointed out that while examining the free offers, it had also sought a formal legal opinion from the Attorney General of India. It further said that tariff and impact on government revenue also need to be seen in the larger context of Digital India programme and affordable data connectivity.
Trai has said that the government should not look at the sector and policy governing it through the prism of revenue maximization. It also stated that consumer interest is critical to good regulation and cannot be substituted with revenue maximization. It noted that lower tariffs help increase penetration of telecom services in rural as well as remote areas.
The Telecom Commission had expressed concerns on the serious impact of promotional offers on the financial health of the sector and the capability of telcos to meet their contractual commitments, including payment of installments for spectrum purchased, and repayment of loans. The war of words between the two bodies comes against the backdrop of telecom tariff wars following the entry of Reliance Jio few months ago, offering free voice and data.