TDSAT settles RJio Dispute, directs TRAI to issue guidelines for non-predation

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT), while disposing off the appeals filed by Airtel and Idea Cellular has given various directions to the Telecom Regulatory Authority of India (TRAI)..The primary dispute is with regards to the promotional schemes (‘Welcome Offer’ and ‘Happy New Year Offer’) offered by Reliance Jio, which were allegedly in violation of various TRAI tariff orders and directives..As per TRAI tariff orders and directives any promotional offerings should not exceed a time period of 90 days. Jio, however, was accused of being in breach of these rules for having extended its offer beyond 90 days and TRAI was accused of inaction..The TDSAT has been hearing appeals filed by Airtel and Idea against TRAI order dated October 20, 2016. This order discharged Reliance Jio from any alleged violation of the various TRAI tariff orders and directives as well as the TRAI (IUC) Regulations..The other ground for the appeal against the TRAI order was that the promotional offer is in the nature of predatory pricing, which is not permitted under the TRAI (IUC) Regulations..The TDSAT, in its final judgment on the matter, without interfering with the TRAI order dated October 20, 2016, has however directed TRAI to do the following:.1) To take action against Jio for non-compliance of the reporting requirement under seven days..(Through the 30th amendment to the tariff orders issued in 2004, TRAI revised the “reporting requirement” to be followed by a TSP in respect of any new tariff launched by it and amendments therein. As per this, a TSP is required to report the details of each tariff to TRAI within seven days of its implementation).2) To issue clear guidelines on how the self-check regime needs to be implemented by the TSPs..(TSPs were asked to implement the tariff plans after conducting a self-check of their tariffs with the regulatory principles including tariff being IUC Compliant.).3) To issue guidelines to spell out what non-predation in the telecom sector is..4) To issue guidelines for timely collection of Subscriber data..5) To enforce a mandatory filing procedure for any TSP seeking to offer free services. Accordingly, if any TSP wants to provide free services, an application has to be filed with the TRAI one week prior to proposed launch date. Only once the TRAI is convinced that all the above principles have been adhered to, will the offer be allowed to launch. Until now, the TSPs were simply require to file with the TRAI with no requirement of an approval..Senior Advocate Gopal Jain along with Harsh Kaushik represented Airtel. Senior Advocate Soli Cooper briefed by Bharucha & Partners represented Idea..For TRAI, it was ASG Tushar Mehta and for Reliance Jio, Senior Advocate Ramji Srinivasan.