Private GSM players like Bharti Airtel and Vodafone can breathe easy as the telecom regulator is not going to issue a diktat asking them to roll back the recent tariff hike. GSM players hiked local SMS charges by a flat 20% on Monday and STD tariffs by 20% a fortnight ago much to the dismay of consumers and even the telecom regulator.
A visibly miffed TRAI chairman Nripendra Misra had earlier indicated that the regulator would explore all options in the interest of the consumer. But it was learnt that private GSM players met Misra on Thursday and explained the rationale behind the tariff hike. The regulator may not have bought the logic but says intervention is best avoided.
Nripendra Misra, Chairman, TRAI, said "we have to understand that tariffs are under forbearance. They have been left to market forces and it is a result of that we have seen tarriffs fall so much taking a hasty decision to intervene would set a wrond percedent and i don't want to do that".
But the matter may not die down just yet. A Delhi based NGO telecom watchdog has written to TRAI urging intervention. The NGO has allgeded cartelisation by private GSM players and has threatened to take them to court. The regulator says there is no evidence of a cartel but there seems to be pricing cooperation.
The recent tariff hike isn't the only case in point. A couple of months ago, all priavte GSM operators decided against a cut in roaming tariffs. This despite all other operators slashing roaming rates. But GSM operators assert that there is only a "meeting of minds" and that no cartel could possibly operate in market as competitive as this.
A visibly miffed TRAI chairman Nripendra Misra had earlier indicated that the regulator would explore all options in the interest of the consumer. But it was learnt that private GSM players met Misra on Thursday and explained the rationale behind the tariff hike. The regulator may not have bought the logic but says intervention is best avoided.
Nripendra Misra, Chairman, TRAI, said "we have to understand that tariffs are under forbearance. They have been left to market forces and it is a result of that we have seen tarriffs fall so much taking a hasty decision to intervene would set a wrond percedent and i don't want to do that".
But the matter may not die down just yet. A Delhi based NGO telecom watchdog has written to TRAI urging intervention. The NGO has allgeded cartelisation by private GSM players and has threatened to take them to court. The regulator says there is no evidence of a cartel but there seems to be pricing cooperation.
The recent tariff hike isn't the only case in point. A couple of months ago, all priavte GSM operators decided against a cut in roaming tariffs. This despite all other operators slashing roaming rates. But GSM operators assert that there is only a "meeting of minds" and that no cartel could possibly operate in market as competitive as this.
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