TRAI’s new tariff order: 30% market share to define significant player


New Delhi, Feb 7: Telecom Regulatory Authority of India (TRAI) is set to benchmark 30 percent share of revenues or subscriber base in a given circle for a mobile services provider to be categorized as a significant market player in that licensed area, according to a source. The classification will form part of the regulator’s new tariff order that it will issue this week.
“The new tariff order will define a significant market player in the context of tariffs. It will also define what is predatory pricing so that companies don’t level baseless allegations against the regulator or their rivals in the future,” an official familiar with the development said.
The latest tariff order will be an entirely fresh book, the previous version having been amended 62 times in 19 years.
Significant market player can also be defined in terms of quantum of spectrum held by a company in a given circle but in the context of tariffs, market share in terms of subscribers and revenue share provide better clarity while dealing with a matter.
“Depending on the matter, any of the two – subscriber market share or revenue share could be used to define a significant market player,” another official said.
First rolled out in 1999, TRAI’s Telecommunication Tariff Order governs tariffs of all things telecom – calls, data, SMS, telemarketing messaging and so on. With wholesales changes over the years, the regulator felt it was time to compile them into one set of rules that telecom companies could refer to.