Relief for Airtel, Idea as tribunal stays Trai's predatory pricing order

Trai linked predatory pricing with SMPs, limiting the incumbents' flexibility in offering tariffs below Jio's, whereas there was no such limiting factor for the entrant

In a relief to incumbents, including Bharti Airtel and Idea Cellular, and a setback to newcomer Reliance Jio, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Tuesday imposed an interim stay on the clauses of the Telecom Regulatory Authority of India’s (Trai’s) order relating to reporting requirements and the new definition for ascertaining “significant market power” (SMP). The tribunal did not, however, grant a stay on the whole regulation on predatory pricing. 

Airtel and Idea had approached the TDSAT challenging Trai’s regulation as they felt the new rules favoured Reliance Jio, which is a party in the case.

In February, Trai