Tariff war-Telecom companies can challengingly match

From the day one, Reliance jio Infocom launched a new mobile networking  with an attractive tariff package, sending cracks into the traditional tariff plans prevailing then, in fact, telecom companies made huge profit till then by charging every service they gave, Jio offered unlimited voice call and 1 GB  net service per day offer, all other telecom companies had to face the wrath of Jio.

Telecom Regulatory Authority of India TRAI chairman R.S.sharma gave clearance to top telcos to choose the matching tariff, could be lower or even free offers of arrival without falling foul to the latest predatory pricing order that redefined significant market power-SMP, as the interest was not to dampen the competition.

This could bring the desired relief to Bharati Airtel, Vodafone India, Idea Cellular as Jio got the tariff flexibility to those operators having 30 percent of market subscribers or less or revenue, which Jio got qualified, having 13 to 14 percent market share of subscribers.

Airtel-Vodafone-combined 30 percent above market revenue, reacted that the rule(less than 30 percent SMP) does not help them to share tariff flexibility to beat Jio. If Reliance gives zero tariff offer, if you have to match yours competitively, nothing is wrong. The intention is more important than the intent-taken from CCI, Sharma added.

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