Pricing power

After doing course correction, Trai needs to free tariffs

The move by the telecom and broadcasting sector regulator, the Telecom Regulatory Authority of India (Trai), to amend the new tariff order (NTO) 2.0 earlier in the week to restore the price cap for a television channel, which is part of a bouquet, to Rs 19 from Rs 12 earlier is a step in the right direction. In future, Trai must stay away from regulating channel prices or broadcasting platform tariffs in keeping with competitive market dynamics. In telecom, tariffs are under forbearance. Even when telcos have been bleeding in an ultra-low-tariff scenario following Reliance Jio’s entry disrupting the market,