TDSAT asks Trai to intervene in tariff hike

The Telecom Dispute Settlement and Appellate Tribunal (TDSAT) today pulled up sector regulator Telecom Regulatory Authority of India (Trai) for not intervening till now in the matter of recent tariff hike by three major telecom players - Bharti Airtel, Hutch Essar and Idea.

Replying to a petition by NGO Telecom Watchdog on last month's hike in charges by operators, Trai said: "We are constantly watching the issue... And still the charges are within the ceiling limits".

"What are you watching. This is not simple bird watching. You have to intervene," a TDSAT bench headed by Justice Arun Kumar told Trai.

Telecom Watchdog sought the regulator's intervention on the price hike by Bharti Airtel, Vodafone Essar and Idea and alleged that the three telcos have formed a cartel and increased local call charges by 20% along with a 20-32% increase in charges on ISD calls.

The tribunal also said it wanted a positive response from the regulator on this issue.

On this, Trai counsel said that he would take instructions from the regulator on what they could do in this matter.

Trai has put the tariffs under forbearance policy, through which it monitors the level of charges, after a persistent downward trend due to competition in the past.

The NGO further alleged that the trio was even violating the "principle of economics of sale" as they were charging higher tariff in Delhi in comparison to Chennai.

In Chennai, Airtel charges Rs 0.99 for local call but in Delhi it is Rs 1.20. For an SMS it charges only Rs 0.05 in Chennai but Rs 1.20 in Delhi.