Set Floor Prices In Telecom Sector: NITI Aayog

Government think-tank NITI Aayog has “strongly emphasised” that the floor prices in telecom are the need of the hour, due to the heavy burden in the sector, even though it’s not a long-term solution.

“We would like to strongly emphasise that floor prices are the need of the hour to enable the continuation of a multiplicity of firms that is critical for healthy competition,” said in its comments to Telecom Regulatory Authority of India’s (TRAI) consultancy paper (CP).

TRAI, the telecom licensor, had floated a CP on ‘Tariff Issues of Telecom Services’ on December 17, 2019.

“Given the heavy debt burden being faced by the sector and the recent fall in prices to unsustainable levels, there is no option but to set floor prices. As we had mentioned in our comments, this may be reviewed for its impact on the market and a view may be taken on bringing back forbearance, once the sector fully revives,” it said in a letter dated March 4, 2020.

―The Hindu Business Line