Predatory Pricing: Take Of Vodafone Idea

May 1, 2023
Predatory Pricing Vodafone Idea

By Rupin Chopra and Apalka Bareja

One has undoubtedly seen a rampant increase in competition in the telecommunication industry since the 2G Scam[1] and with new players such as Reliance Jio entering the market. Since then, the telecom sector in India has witnessed the intense change over the last decade which includes the Vodafone-Idea merger in 2018 to reinforce the steep competitiveness of the sector and Bharti Airtel accusing Reliance Jio of predatory pricing.

In India, it is the Competition Act, of 2002 that promotes and governs the competition by regulating the anti-competitive conduct by various enterprises and companies. In the year 2019, Bharti Airtel had accused Reliance Jio of predatory pricing.[2]

With history repeating itself, this issue has once again become the center of debate in the telecom industry. According to leading news media house reports, Vodafone Idea has accused Reliance Jio and Bharti Airtel of predatory pricing due to the unlimited 5G offers it is offering to customers.[3]

As per the articles of leading news media houses, Reliance Jio and Bharti Airtel have responded to TRAI i.e., Telecom Regulatory Authority of India refuting the allegation imposed by Vodafone Idea and stating that the offering cannot be termed as predatory pricing as user base of 5G consists of a small network which is still under process. In addition to this Reliance Jio and Bharati Airtel also submitted saying the 5G offering is being delivered as part of the 4G packs and are being charged with that of tariffs.[4]

It is reported that the matter is currently being studied by the legal team, finance team and technical team of TRAI keeping in mind that it should affect the 5G services in the country.

[1] Loop Telecom & Trading Ltd. v. Union of India, 2022
[2] Bharti Airtel v. Reliance Jio,2017 (PDF).

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