Blow for telcos: Niti Aayog, CCI oppose fixing floor for telecom tariffs

NEW DELHI: Niti Aayog and the Competition Commission of India (CCI) have opposed any move to fix a floor tariff for voice and data services, saying setting a base price would disincentivise competition, deter innovation and deprive consumers of benefits. They instead called for policy reforms to restore the health of the sector. These views deal a blow to the operators who say that a floor price, along with reforms, is key for the long-term viability of the sector.

In a February 28 letter to the Telecom Regulatory Authority of India (Trai), seen by ET, the Niti Aayog said, “The proposed minimum floor price are likely to disincentivise competition on cost efficiency, price, and quality parameters, and deter new entries and innovation.”