Trai official says predatory pricing doesn’t apply
In a setback to market leader Bharti Airtel Ltd, the telecom regulator has declined to look into Bharti Airtel’s allegation that Mukesh Ambani’s Reliance Jio Infocomm Ltd was offering “predatory” prices to lure customers.
The move comes a day after Bharti Airtel chairman Sunil Bharti Mittal requested the Telecom Regulatory Authority of India, or Trai, to intervene in the matter.
“I don’t think it applies in this case,” a Trai official said, adding that predatory pricing is usually done by a company that has maximum market share.
“The issue of predatory pricing is usually done by dominant players in the market in a competitive scenario, however, if someone complains about Reliance Jio, then Jio is not a dominant player in the market,” the official said, requesting anonymity. Trai will refrain from regulating tariffs, the person said.