Home India Telecom Regulatory Authority of India In exercise of the powers conferred upon it under sub sectio...
Date: 2018-02-16 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred upon it under sub section 2 of section11

Issued by Telecom Regulatory Authority of India · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document pertains to the sixty-third amendment to the Telecommunication Tariff Order of 1999, issued by the Telecom Regulatory Authority of India (TRAI). It addresses regulatory principles related to tariff offerings, transparency, non-discrimination, and predatory pricing in the telecommunications sector. The amendment is effective from the date of its publication in the Official Gazette. This document also provides clarification and justification for these amendments. Key Points / Main Content: * **Amendment Applicability:** * Applies to all services offered within the country, including calls originating domestically and terminating abroad, and vice versa. * **Reporting Requirements:** * Service providers must self-certify and inform TRAI of any new tariff or changes within seven working days of implementation. * Information must ensure the tariff aligns with regulatory principles, including transparency, non-discrimination, and non-predatory pricing. * **Definitions:** * *Average Variable Cost*: Total variable cost divided by total output. * *Specific Telecommunication Services*: Includes wireline and wireless access services, national and international long-distance services, and any other licensed telecommunication service. * *Non-Predatory Pricing*: Service providers with significant market power must not engage in predatory pricing. * *Predatory Pricing*: Providing a specific telecommunication service in a relevant market below the average variable cost to eliminate competition. * *Relevant Market*: Defined by TRAI in terms of relevant product and geographic markets for specific telecommunication services. * *Relevant Product Market*: The market related to specific telecommunication services for which TRAI grants licenses to telecom service providers. * *Relevant Geographic Market*: The market for a specific licensed service for which licensing authority grants licenses to telecom service providers. * *Significant Market Power (SMP)*: Possession of at least 30% market share in the relevant market, determined by subscriber base or gross revenue. * *Total Cost*: Includes labor, administrative, sales and marketing, network operation, regulatory fees, financial levies, and other service-related costs. * *Total Variable Cost*: Total cost less fixed costs and fixed overheads. * *Transparency*: Disclosure of all relevant information for each tariff plan to enable informed customer choices, including clarity, completeness, and ease of understanding. * **Non-Discrimination:** * Service providers must not discriminate between subscribers of the same class. * Subscriber classification must be based on objective criteria with a justified relationship to the classification's purpose. * Differential pricing in the nature of vertical price squeeze will be considered a case of tariff discrimination. * **Financial Disincentives for Non-Compliance:** * Failure to comply with reporting requirements incurs a financial disincentive of ₹5,000 per day, up to a maximum of ₹2 lakh, as directed by TRAI. * Predatory tariffs may be rejected by TRAI after detailed justification. * Offering predatory tariffs incurs a financial disincentive up to ₹50 lakh per service, as directed by TRAI, without prejudice to license conditions. * No order for financial disincentive will be passed unless the service provider is given a fair hearing. * **Explanation of the Amendment:** * Addresses changing market conditions and new product categories since the original 1999 order. * Reviews regulatory principles and related regulations for tariff offerings. * Affirms TRAI’s authority to regulate tariffs for various services provided by telecom service providers. * Acknowledges the extensive changes in the telecommunications landscape over the past nineteen years. * **Transparency in Tariff Offerings** * TRAI emphasized the importance of transparency and has issued many directives and instructions to ensure tariff transparency. * To ensure transparency, tariff plans must be checked and fulfill the following standards: Accessibility, accuracy, comparability, clarity, absence of hidden charges, simplicity, and consistent. * **Promotional Offers** * TRAI received recommendations regarding promotional offers and will examine in consonance with various provisions of TRAI Act and related regulations. * Also included details on subscriber base management and how it relates to regulations. Impact Analysis: * **Telecom Service Providers (TSPs):** * *Impact*: Must adhere to revised reporting requirements, non-discrimination policies, and pricing regulations. * *Action Required*: Review tariff offerings to ensure compliance, implement self-certification processes, and avoid predatory pricing practices. * **Subscribers:** * *Impact*: Enhanced transparency in tariff plans, protection against discriminatory pricing, and assurance of fair market practices. * *Action Required*: Understand tariff details, compare offerings, and report any discrepancies or unfair practices to TRAI. * **Telecom Regulatory Authority of India (TRAI):** * *Impact*: Strengthened regulatory framework for monitoring and enforcing tariff compliance. * *Action Required*: Monitor TSP compliance, review tariff filings, address subscriber complaints, and enforce financial disincentives for violations.

Key Entities Referenced

New Delhi: The city where the notification was published. The Gazette of India: Official publication in which the notification is published. Indian Telegraph Act, 1885: Mentioned in relation to regulations concerning telecommunications services within and outside India. Telecom Regulatory Authority of India (TRAI): The regulatory body responsible for governing telecommunications services and tariffs in India. TRAI Act, 1997: The legislation establishing TRAI and defining its powers and functions. Telecommunication Tariff Order, 1999: Original order being amended by this notification, relating to tariff regulations for telecommunication services. Telecom Consumers Protection Regulations, 2012: Regulations pertaining to the protection of telecommunication consumers. Bharat Sanchar Nigam Limited (BSNL): A state-owned telecommunications company in India.
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ckrks a d s vykok igqWpa ] ifj’k)q rk] ryq uh;] i.w kZrk] fHkUurk ,o a igpku ;kXs;] Li”V ,o a vlfanX/k rFkk ljy ,o a vlfanX/k gksuk ‘kkfey gAS ¼i½ ektS wnk mi [kMa ra] rb rFkk rc dk s Øe'k% rd] re vkSj rf d s :i d s :i e sa iqu% Øec) fd;k tk,xk( 4- eyw i'z kYq d vkn's k dh [kMa 7 esa ektS wnk mi [kMa ¼iii½ d s LFkku ij fuEuor mi [kMa dk s izfrLFkkfir fd;k tk,xk] uker% & **¼iii½ ;fn dkbs Z lsok iznkrk fjikfsVZax lca /akh vi{skkvk sa dk vuiq kyu ugha djrk g S rk s bld s ykblals ] vFkok vf/kfu;e vFkok fu;e vFkok fofu;e vFkok vkn's k vFkok bld s rgr tkjh fd, x, fun's kk sa dh fuc/aku vkSj 'krk sZa ij ifzrdyw iHzkko Mky s fcuk fjikfsVxZa e as foyEc d s fy, foÙkh; fu:Rlkgu d s ek/;e l s ikpa gtkj #i, ifzrfnu d s fglkc l s vkSj vf/kdre nk s yk[k #i,] tSlk izkf/kdj.k vkn's k }kjk fun's k n]s dk Hkxq rku djxs k( izkf/kdj.k] fdlh O;fDr l s lanHk Z izkIr gksu s ij vFkok Lor% vigkjd eYw ;fu/kkZj.k d s gksu s dk irk yxku s d s fy, ,l,eih d s i’z kYq dk sa dh tkpa dj ldrh gAS lanfHkZr i’z kYq dk sa dks vigkjd ik, tku s ij] foLr`r vkfSpR; izLrqr djr s g,q izkf/kdj.k }kjk ml s jÌ fd;k tk ldrk gAS ;fn i'z kYq d vigkjd ik, tkrs g Sa rks lsok inz krk bld s ykblsal vFkok vf/kfu;e vFkok fu;e vFkok fofu;e vFkok vkn's k vFkok blds rgr tkjh fd, x, fun's kk sa dh fuc/aku vkSj 'krk sZa ij ifzrdyw iHzkko Mky s fcuk foÙkh; fu:Rlkgu d s ek/;e l s izR;ds lsok {ks= d s fy, vf/kdre ipkl yk[k #i,] tSlk izkf/kdj.k vkn's k }kjk fun's k n]s dk Hkxq rku djxs k( c’kr sZ fd izkf/kdj.k }kjk foÙkh; fu:Rlkgu ds ek/;e ls Hkxq rku djus dk dkbs Z vkn’s k ugha ikfjr fd;k tk,xk tc rd fd lsok inz krk dks izkf/kdj.k }kjk i'z kYq d vkn's k ds mYy?a ku d s fo:) lqu s tku s dk ,d mfpr volj inz ku ugh a fd;k x;k gkAs ** 5- eyw i'z kYq d vkn's k dh [kMa 10 d s LFkku ij fuEuor [kMa dk s ifzrLFkkfir fd;k tk,xk] uker% &¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3 **10- xSj&foHksnudkjh & dkbs Z Hkh lsok inz krk fdlh Hkh izdkj l s leku oxk sZa d s lClØkbcjk sa d s chp fdlh Hkh idz kj l s Hksn ugh a djxs k rFkk lClØkbcjk sa dk ,slk oxhdZ j.k] eueku s <x+a l s ugh a fd;k tk,xk% c’kr sZ fd lClØkbcjk sa dk iRz;ds oxhZdj.k ck/skxE; ofS’k”V; ij vk/kkfjr gkxs k vkSj oxhdZ j.k d s i;z kts u dk bl ofS’k”V; d s lkFk vkSfpR;i.w k Z lca /ak gksuk pkfg,% c’kr sZ ;g Hkh fd *ofVdZ y izkbt LDoht* d s Lo:i e sa i’z kYq d] foHkns dkjh i’z kYq d dk ekeyk ekuk tk,xkA** uuuukkkkVVssVVss 1111 %%%% nwjlpa kj i’z kYq d vkn’s k] 1999 fnukda 09 ekp]Z 1999 dh vf/klpw uk la[;k 99@3 ds rgr Hkkjr ds jkti= vlk/kkj.k] Hkkx&III] [kMa 4 esa idz kf'kr fd;k x;k Fkk vkSj fd, x, mÙkjorh Z l’a kk/skuk sa dks uhp s fn;k x;k g%S llll’’aa’’aakkkkkkkk//ss//sskkkkuuuu llll[[aa[[aa ;;;;kkkk vvvvffff////kkkkllllppwwppww uuuukkkk ddddhhhh llll[[aa[[aa ;;;;kkkk rrrrFFFFkkkkkkkk ffffrrrrffffFFFFkkkk igyk fnukda 30-3-1999 dk 301&4@ 99& Hkknfwoizk ¼bd‚u½ nwljk fnukda 31-5-1999 dk 301&4@ 99& Hkknfwoizk ¼bd‚u½ rhljk fnukda 31-5-1999 dk 301&4@ 99& Hkknfwoizk ¼bd‚u½ pkSFkk fnukda 28-7-1999 dk 301&4@ 99& Hkknfwoizk ¼bd‚u½ ikpa oka fnukda 17-9-1999 dk 301&4@ 99& Hkknfwoizk ¼bd‚u½ NBk fnukda 30-9-1999 dk 301&4@ 99& Hkknfwoizk ¼bd‚u½ lkroka fnukda 30-3-2000 dk 301&8@ 2000& Hkknfwoizk ¼bd‚u½ vkBoka fnukda 30-7-2000 dk 301&8@ 2000& Hkknfwoizk ¼bd‚u½ ukSoka fnukda 28-08-2000 dk 301&8@ 2000& Hkknfwoizk ¼bd‚u½ nlok a fnukda 09-11-2000 dk 306&1@ 99& Hkknfwoizk ¼bd‚u½ X;kjgoka fnukda 25-01-2001 dk 310&1¼5½@Hkknfwoizk&2000 ckjgoka fnukda 25-01-2001 dk 301&9@2000& Hkknfwoizk ¼bd‚u½ rsjgok a fnukda 01-5-2001 dk 303&4@ Hkknfwoizk&2001 pknS oka fnukda 24-5-2001 dk 306&2@ Hkknfwoizk&2001 ina gz oka fnukda 20-07-2001 dk 310&1¼5½@ Hkknfwoizk& 2000 lkys goka fnukda 14-08-2001 dk 310&5¼17½@ 2001& Hkknfwoizk ¼bd‚u½ l=goka fnukda 22-01-2002 dk 301@2@2002& Hkknfwoizk ¼bd‚u½ vBkjgoka fnukda 30-01-2002 dk 303@3@2002& Hkknfwoikz ¼bd‚u½ mUuhloka fnukda 28-02-2002 dk 303@3@2002& Hkknfwoizk ¼bd‚u½ chloka fnukda 14-03-2002 dk 312&7@2001& Hkknfwoizk ¼bd‚u½ bDdhloka fnukda 13-06-2002 dk 301&6@2002& Hkknfwoizk ¼bd‚u½ ckbZloka fnukda 04-07-2002 dk 312&5@2002& Hkknfwoizk ¼bd‚u½ rbs Zloka fnukda 06-09-2002 dk 303@8@2002& Hkknfwoizk ¼bd‚u½ pkcS hlok a fnukda 24-01-2003 dk 306&2@2003&bd‚u iPphloka fnukda 12-03-2003 dk 306&2@2003&bd‚u NCchloka fnukda 27-03-2003 dk 306&2@2003& bd‚u lÙkkbZloka fnukda 25-04-2003 dk 303@6@2003& Hkknfwoizk ¼bd‚u½ vVB~ kbZloka fnukda 05-11-2003 dk 301&51@2003& bd‚u murhloka fnukda 03-12-2003 dk 301&56@2003& bd‚u rhloka fnukda 16-01-2004 dk 301&4@2004 ¼bd‚u½ bdrhloka fnukda 07-07-2004 dk 301&2@2004&bd‚ cÙkhloka fnukda 07-10-2004 dk 301&37@2004&bd‚ rSarhloka fnukda 08-12-2004 dk 301&31@2004& bd‚ pkSarhloka fnukda 11-03-2005 dk 310&3¼1½@2003& bd‚ iSarhloka fnukda 31-03-2005 dk 310&3¼1½@2003& bd‚ NÙkhloka fnukda 21-04-2005 dk 312&7@2003& bd‚ lSarhok a fnukda 02-05-2005 dk 312&7@2003& bd‚ vM+rhloka fnukda 02-06-2005 dk 312&7@2003& bd‚ murkyhloka fnukda 08-09-2005 dk 310&3¼1½@2003& bd‚4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] pkyhloka fnukda 16-09-2005 dk 310&3¼1½@2003& bd‚ bdrkyhlok a fnukda 29-11-2005 dk 310&3¼1½@2003& bd‚ c;kyhloka fnukda 07-03-2006 dk 310&34@2005& bd‚ rSarkyhloka fnukda 21-03-2006 dk 310&2@2006& bd‚ pokyhloka fnukda 24-01-2007 dk 301&34@2006& bd‚ iSrkyhloka fnukda 05-06-2007 dk 301&18@2007& bd‚ fN;kyhloka fnukda 24-01-2008 dk 301&36@2007& bd‚ lSrkyhloka fnukda 17-03-2008 dk 301&14@2008& bd‚ vM+rkyhloka fnukda 01-09-2008 dk 301&31@2007& bd‚ mupkloka fnukda 20-11-2008 dk 301&25@2009& bvZ kj ipklok a fnukda 19-04-2012 dk 301& 24@2012&bvZ kj bD;kouoka fnukda 19-04-2012 dk 301& 26@2011& bvZ kj ckouoka fnukda 19-09-2012 dk 301& 41@2012& ,Q,Ma b,Z frjiuok a fnukda 01-10-2012 dk 301&39@2012& ,Q,Ma b,Z pkSouoka fnukda 05-11-2012 dk 301& 59@2012& ,Q,Ma b,Z ipiuoka fnukda 17-06-2013 dk 301& 10@2012& ,Q,Ma b,Z NIiuoka fnukda 26-11-2013 dk 301& 26@2012& bvZ kj lrkouoka fnukda 14-07-2014 dk 312& 2@2013& ,Q,Ma b,Z vBkouoka fnukda 01-08-2014 dk 312& 2@2013& ,Q,Ma b,Z mulBoka fnukda 21-11-2014 dk 310& 5¼2½@2013& ,Q,aMbZ, lkBoka fnukda 09-04-2015 dk 301& 16@2014& ,Q,Ma b,Z bdlBoka fnukda 22-11-2016 dk 301& 30@2016& ,Q,Ma b,Z cklBoka fnukda 27-12-2016 dk 301& 30@2016& ,Q,Ma b,Z uuuukkkkVVssVVss 2222 % ;g O;k[;kRed Kkiu nwjlpa kj i’z kYq d ¼frjlBok a l’a kks/ku½ vkn’s k] 2018 d s dkj.kk as dk s Li”V djrk gSA OOOO;;;;kkkk[[[[;;;;kkkkRRRReeeedddd KKKKkkkkiiiiuuuu nnnnwjwjwjwjllllppaappaa kkkkjjjj iiii’’zz’’zz kkkkYYqqYYqq dddd ¼¼¼¼ffffrrrrjjjjslslslslBBBBooookkkk aa aa llll’’aa’’aa kkkkkkkk//ss//sskkkkuuuu½½½½ vvvvkkkknnnn’’ss’’ss kkkk]]]] 2222000011118888 1-0 iiiizkzkzkzkDDDDddddFFFFkkkkuuuu 1-1 oreZ ku dok;n dk mÌ’s ;] cnyrh gbq Z cktkj dh ifjfLFkfr;k sa vkSj mRikn dh ub Z Jsf.k;k as d s eÌsutj] o”k Z 1999 e as tkjh fd; s x; s rFkk le;&le; ij ;Fkk l’a kkfs/kr] nwjlpa kj i’z kYq d vkn’s k ¼VhVhvks½ e sa ;Fkk fu/kkfZjr i’z kYq d d s eq[; fofu;keddkjh fl)kark sa vkSj vU; lca fa/kr fofu;ek sa dh leh{kk djuk gAS 1-2 Hkkjrh; nwjlpa kj fofu;ked izkf/kdj.k ¼Hkknfwoikz½ dk]s Hkkjrh; nwjlpa kj fofu;ked izkf/kdj.k vf/kfu;e] 1997 d s ek/;e l s nwjlpa kj lsok inz krkvk sa }kjk inz ku dh tk jgh fofHkUu lsokvks a d s fy, vkWQj fd, tk jg s i’z kYq dk sa dk s fofu;fer dju s d s fy, vf/knfs’kr fd;k x;k gAS Hkknfwoikz vf/kfu;e] 1997 dh /kkjk 11¼2½ fuEukuqlkj ifBr gS% **Hkkjrh; rkj vf/kfu;e] 1885 ¼1885 dk rsjgok½a e sa fdlh rF; d s gksr s g,q Hkh] izkf/kdj.k le;&le; ij] vkn’s k }kjk mu njk sa dks jkti= e sa vf/klfwpr dj ldxs k] ftu ij Hkkjr e sa vkSj Hkkjr d s ckgj nwjlpa kj los k, a bl vf/kfu;e d s v/khu miyC/k djkb Z tk,xa h ftud s varxrZ o s nj sa Hkh gSa] ftu ij lan’s kk sa dk s Hkkjr ds ckgj fdlh n’s k dk s ikjfs”kr fd;k tk,xk% c’kr]sZ izkf/kdj.k ,d leku nwjlpa kj lsokvk sa dh ckcr fHkUu&fHkUu O;fDr;k sa d s ox Z d s fy, fHkUu&fHkUu njas vf/klfwpr dj ldxs k vkSj tgk a mij crk; s x; s vuqlkj fHkUu&fHkUu njsa fu;r dh tkrh g Sa ogk a izkf/kdj.k mld s fy, dkj.k vfHkfyf[kr djxs kA** Hkkjr e sa nwjlpa kj {ks= e sa O;kid ifjorZu g,q gSa] tgk a nwjlpa kj Ik’z kYq d vkn’s k] 1999 ¼**VhVhvk*s*½ ds loiZ Fz ke vf/klfwpr gksus d s ckn l s Hkkjr d s nwjlpa kj {ks= e sa fiNy s mUuhl o"kksaZ e sa çk|S kfsxdh] nwjlpa kj lsok çnkrkvkas] fofHkUu nwjlpa kj los kvk]as cktkj dh lajpuk] çfrLi/kk]Z mi;kxs drkZ çkQs kby vkSj mi;kxs d s iSVuZ lfgr nwjlpa kj ikfjfLFkfrdh ra= e sa O;kid ifjorZu g,q gASa ifj.kkeLo:i] bu fodkl d s lkFk&lkFk Lo; a VhVhvks e sa vuds kuds l’a kk/sku ¼cklB l'a kk/sku½ gq, gASa 1-3 oRkeZ ku dok;n d s ihN s i”`BHkfwe rFkk vkfSpR; dk s fuEuor iSjk e sa n’kk;Z k x;k g%S 2-0 iiii””``””``BBBBHHHHkkkkffwwffwweeee %%%% 2222----1111 nnnnwjwjwjwjllllppaappaa kkkkjjjj iiii’’zz’’zz kkkkYYqqYYqq dddd vvvvkkkknnnn’’ss’’ss kkkk ¼¼¼¼VVVVhhhhVVVVhhhhvvvvkkkk½½ss½½ss &&&& Hkknfwoizk vf/kfu;e] 1997 dh /kkjk 11¼2½ d s rgr iznÙk ‘kfDr;k sa dk mi;kxs djr s g,q ] loiZ Fz ke fnukda 09 ekp]Z 1999 dk s nwjlpa kj i’z kYq d vkn’s k ¼VhVhvk½s dk s vf/klfwpr fd;k x;k FkkA VhVhvks dh eq[; fo'k"skrk,a i’z kYq d dh lhek,a r; djuk] fof'k"V fofu;ked fl)karksa d s vu:q i] ;Fkk miHkkäs kvk sa d s fgrk sa dh j{kk d s fy, ikjnf'kZrk] xSj&Hkns Hkkoi.w kZ vkSj vigkjd eYw ;fu/kkjZ .k] djus d s fy,] i’z kYq d d s fy, nwjlpa kj lsok inz krk ¼Vh,lih½ dh vksj l s fjikfsVxaZ lca /akh vi{s kk, a FkhAa VhVhvk s d s igyh ckj vf/klfwpr gksu s d s ckn l s fiNy s¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 5 19 o”kk sZa l s n’s k d s nwjlpa kj {ks= d s ikfjfLFkfrdh ra= e sa i;z Dq r çk|S ksfxdh] nwjlpa kj los kvk as d s idz kj] cktkj lajpuk] çfrLi/kkZ] mi;kxs drk Z ds çkQs kby vkSj fofHkUu nwjlpa kj lsokvk sa d s mi;kxs d s iVS u Z d s lca /ak e sa cM +s ieS ku s ij cnyko g,q gASa VhVhvk]s 1999 e as le;&le; ij l'a kk/sku fd, x, g Sa rkfd fodflr gksr s nwjlpa kj ifj–'; dk s mle sa LFkku fn;k tk ldAs ifj.kkeLo:i] vkt dh fLFkfr d s vuqlkj] {ks= e sa g,q fodkl dk s ble sa LFkku nsus d s fy, VhVhvk s esa vc rd cklB ckj l'a kk/sku fd;k tk pdq k gAS 2-2 vvvvUUUU;;;; ffffooooffffuuuu;;;;eeee &&&& fofu;keddkjh vi{s kkvk sa dks iwjk djus ds fy, VhVhvks d s vfrfjä] le;&le; ij Hkknwfoizk }kjk fofHkUu fofu;e] fn'kk&funs'Z k vkSj ijke’k Z tkjh fd, x, gASa mnkgj.k d s fy,] le;&le; ij ;Fkk l’a kkfs/kr nwjlpa kj miHkksäk laj{k.k fofu;e ¼Vhlhihvkj½] 2012] fofHkUu i’z kYq d mRiknk sa dh fo'k"skrkvksa dk s ifjHkkf"kr djrk g S vkSj rRlca /ak e sa ikjnf'kZrk lca /akh eíq k as dk Hkh lek/kku djrk gAS 2-3 iiii’’zz’’zz kkkkYYqqYYqq dddd ffffooooffffuuuu;;;;eeee %%%% iiii’’zz’’zz kkkkYYqqYYqq dddd ffffuuuu////kkkkkkkkZjZjZjZj....kkkk ffffdddd,,,, ttttkkkkuuuu ss ss llll ss ss ****QQQQkkkkWWjjWWjjcccchhhh;;;;jjjjsalsalsalsal**** rrrrdddd% VhVhvk s i’z kYq d dk s **njksa vkSj lca fa/kr 'krkZsa ds :i e sa ifjHkkf"kr djrk g S ftle sa n’s k d s Hkhrj vkSj n’s k d s ckgj nwjlpa kj lsok, a çnku dh tk ldrh gSa] ftue as njk as vkSj lca fa/kr ifjfLFkfr;k a 'kkfey g]Sa ftu ij n’s k d s ckgj fdlh Hkh n's k e sa lna 's k Hkts k tk,xk] /kjkgs j jkf’k] laLFkkiuk 'kYq d] fdjk;k] fu’kYq d d‚y]as mi;kxs iHzkkj vkSj dksb Z vU; lca )a ‘kYq d vFkok lsok iHzkkj ‘kkfey gAS **izkjHak e sa *i’z kYq d njk sa d s fu/kkZj.k* d s nkSj l s yds j] Hkknfwoizk fiNy s vuds o"kksa Z l s *iwo Z vueq kns u pj.k d s lkFk l s varr% fofu;ked fuxjkuh d s lkFk* dk;kiZs jkar tkudkjh inz ku djus d s nkf;Ro ds lkFk *QkWjch;jals * d s nkSj* e as izo’s k dj x;k gAS oreZ ku e]as jk"Vªh; jkfsexa ] fQDLM xzkeh.k Vys hQkus h] ;,w l,lMh vkSj yht ykbuk sa d s fy, i’z kYq dk sa d s vykok] vU; lHkh nwjlpa kj lsok, a *QkWjch;jsal* d s rgr gASa i’z kYq d <kpa s d s fy, *ykbV&Vp* fofu;eu dh ;g uhfr bVa jusV lsok çnkrk ¼bld s i’pkr~ lkefwgd :i l s Vh,lih dgk tk,xk½ lfgr lHkh Vh,lih dk s çpfyr cktkj dh ifjfLFkfr;k sa d s vuqlkj izz’kYq d fMtkbu dju s dh Lora=rk iznku djrk gAS bld s ifj.kkeLo:i cktkj e as u, vkSj vfHkuo mRiknk sa dk izknHqkkZo gvq k g S tk s miHkkäs kvk sa dk s lLrh vkSj çfrLi/khZ eYw ; ij nwjlpa kj lsok, a çnku dju s d s fy, fMtkbu fd, x, gASa 3333----0000 iiii’’zz’’zz kkkkYYqqYYqq ddddkkkk sasa sasa ddddkkkk ss ss ‘‘‘‘kkkkkkkkffffllllrrrr ddddjjjjuuuu ss ss ooookkkkyyyy ss ss ffffooooffffuuuu;;;;kkkkeeeedddd ffffllll))))kkkkarararar 3-1 *QkWjch;jsal* d s ektS wnk fl)kar d s ckotnw ] fofu;ked fl)karks a dk vuiq kyu lqfuf'pr dju s d s fy, i’z kYq d ij fofu;ked fuxjkuh fd, tkus dh vko';drk gAS rnuqlkj] Hkknwfoizk u s fofu;ked fl)kark sa d s lkFk lketa L; lfquf'pr dju s d s fy, lalfwpr i’z kYq dksa dh tkpa dhA o”kZ 2004 e sa tkjh VhVhvk s d s 30 os a ¼rhlo½sa l'a kk/sku d s ek/;e l]s Hkknwfoizk us **fjiksfVaxZ lca /akh vko';drkvk*as* dk s l'a kkfs/kr fd;k Fkk ftls bld s }kjk 'k:q fd, x, fdlh Hkh u, i’z kYq d vkSj mues as fd, x, l’a kk/skuk sa d s lac/ak e sa fdlh Vh,lih }kjk ikyu fd;k tkuk vifs{kr FkkA bld s vulq kj] fdlh Vh,lih dk s ;g lfquf’pr dju s d s fy, fd D;k i’z kYq d Iyku lHkh idz kj l s Lor% tkpa dju s d s mijkar lHkh idz kj l s varl;aZ kts u mi;kxs iHzkkjk sa ¼vkb;Z wlh½ vuiq kyu vkSj fofu;keddkjh fl)kark sa ds vu:q i gks a ftle sa vU; 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ffffooooffffggggrrrr ffffdddd,,,, ttttkkkkuuuu ss ss ppppkkkkffffgggg,,,,\\\\ ————iiii;;;;kkkk vvvvkkkkffSSffSSppppRRRR;;;; dddd ss ss llllkkkkFFFFkkkk vvvviiiiuuuuhhhh iiiiffzzffzzrrrrffffØØØØ;;;;kkkk nnnn\\sasa\\sasa 7-2 fgr/kkjdks a u s vvvviiiiuuuuhhhh ffffVVVVIIIIiiiiffff....kkkk;;;;kkkk@@sasa@@sasa iiiiffzzffzzrrrr ffffVVVVIIIIiiiiffff....kkkk;;;;kkkk sasa ssaa rrrrFFFFkkkkkkkk ''''kkkkkkkk//ss//sskkkk ffffVVVVIIIIiiii....kkkk e sa vius n`f"Vdk.s k j[k s gSa] tSlk fd uhps fn;k x;k g%S&¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 7 ¼d½ vuds Vh,lih ¼vkbfM;k] vkjdkWe] ,;jVys ] ,;jlys ] VkVk Vys hlfoZl rFkk ,uVh,u,y½] ,;,w lihvkb Z rFkk vuds O;fDr;k sa us mYy[s k fd;k gS fd eeeekkkkttSSttSSnnwwnnwwkkkk mmmmiiiikkkk;;;; iiii;;;;kkkkIIZZIIZZrrrr gggg SSaa SSaavkSj ik;k fd o s csgrj ekinMa okys gASa bu Vh,lih u s fofu;ked vi{s kkvksa dk vuiq kyu fd, tku s d s fy, mud s }kjk mBk, x, lHkh dnek sa dk s lpw hc) fd;k rFkk bl ckr ij cy fn;k fd ikjnf'krZ k d s uke ij foLr`r fofu;ked vuiq kyu] m|ksx rFkk miHkkDs rkvk sa d s fgr e sa ugh a gkxs kA ;gk a rd fd mUgkasu s i'z kYq d d s idz k'ku] miHkkDs rkvks a d s dfri; oxk sZa dk s i's kd'k] i'z kYq d Iyku d s fy, Ng ekg dh laj{k.k vof/k e sa deh djuk rFkk fofu;e ds ek/;e l s yxk, x, vuko';d ifzrc/akk sa e sa mnkgj.k d s fy, miHkkDs rk lja {k.k fofu;e] 2012 tk s ;g fofufn"ZV djrk g S fd fof'k"V idz kj d s okWmpjksa dks izh&iMs miHkkDs rkvk sa dk s miyC/k djk;k tk ldrk g]S l s lca fa/kr ektS wnk mic/akk sa e sa dfri; NVw fn, tku s dh ekxa dh gAS ¼[k½ ogh a nwljh vksj dNq Vh,lih ¼vkjtsvkb,Z y] Vys hukWj vkSj ch,l,u,y½ lxa Buks a ¼,evkj,Q] nvq k dUlfYVxa ½ vkSj dNq O;fDr;k sa u s dgk fd oooorrrreeZZeeZZkkkkuuuu mmmmiiiikkkk;;;; iiii..ww..wwkkkk ZZ ZZuuuugggghhhh aa aaFFFFkkkk ss ssbbbbllllffffyyyy,,,, oooo ss ssiiii;;;;kkkkIIZZIIZZrrrr uuuugggghhhh aa aaFFFFkkkkAssss mUgksau s Vh,lih }kjk lh/k s miHkkDs rkvk sa dk s ,l,e,l vkfn d s ek/;e l s dh xb Z dfri; i's kd'k dk mnkgj.k fn;k tk s ikjn'kh Z ugh a FkhA mud s vuqlkj] pfquank miHkkDs rkvk as dks fo'k"sk ;kts ukvks a dh i's kd'k Hkknfwoizk d s ikl nt Z rd ugh a gAS ch,l,u,y ds vuqlkj miHkkDs rkvk as d s fof'k"V ox Z dks fo'k"sk i'z kYq d dh i's kd'k] ftldh tkudkjh dsoy ,l,e,l }kjk nh tkrh g]S ,d fpark dk fo"k; gAS ;fn i's kd'k l s brj dkbs Z foiFku gksrk g]S rk s miHkkDs rkvk sa d s ikl f'kdk;r dju s dk dkbs Z fodYi ugh a gksrk gAS fgr/kkjdk sa d s bu legw k as }kjk fn, x, ikjnf'kZrk e sa l/qkkj djus d s vU; egRoi.w k Z l>q kok sa dks uhp s lwphc) fd;k g%S& ¼i½ ^ikjnf'kZrk* dh tfVy 'kCnkoyh d s LFkku ij ^ikjnf'kZrk dh deh* dk s Hkknwfoizk }kjk ifjHkkf"kr fd;k tkuk pkfg,A ¼ii½ i'z kYq d vkSj lsokvk sa d s ckj s e sa tkudkjh rd lyq Hkrk l s igpqa gk s rkfd rqyuk dh tk ld s vkSj tkudkjhizn fu.k;Z fy;k tk ld s ¼¼¼¼,,,,eeeevvvvkkkkjjjj,,,,QQQQ]]]] vvvvkkkkjjjjttttvvssvvss kkkkbbbb,,ZZ,,ZZ yyyy½½½½ ¼iii½ ;g lfquf'pr dju s d s fy, mik; fd, tk, a fd dkbs Z vke miHkkDs rk ml foxkis u tkudkjh dk fuopZu dj ld s rFkk mld s ifj.kkek sa dks le> ldAs ¼¼¼¼nnnnvvqqvvqq kkkk ddddUUUUllllffffYYYYVVVVxxaaxxaa ½½½½ ¼iv½ xzkeh.k miHkkDs rkvk sa d s }kjk [kqnjk foØsrkvk sa ds ijke'k Z dk s ikyu fd, tku s gsr q mik; ¼¼¼¼QQQQMMssMMss jjjj''ss''ss kkkkuuuu vvvvkkkkWWQQWWQQ ddddUUUUTTTT;;;;ddwwddww jjjj ,,,,....MMMM llllffffooooZlZlZlZl vvvvkkkkxxxxuusZsZuusZsZ kkkkbbbbtttt''ss''ss kkkkuuuu½½½½ ¼v½ vuds kuds Iykuk sa dk s Hkknfwoizk dh ocs lkbV ij Mkydj cgs rj rjhd s l s lek/kku fd;k tk ldrk g S tSlk vkbZvkjMh, }kjk fd;k x;k gS ¼¼¼¼vvvvkkkkjjjjttttvvssvvss kkkkbbbb,,ZZ,,ZZ yyyy]]]] ,,,,eeeevvvvkkkkjjjj,,,,QQQQ vvvvkkkkSSjjSSjj VVVVyyssyyss hhhhuuuukkkkWWjjWWjj½½½½ ¼vi½ izkf/kdj.k ryq uk dju s oky s ,d lk/ku dh i's kd'k dj ldrk g S rkfd ,d {k=s e as leku vf/kdre [kqnjk eYw ; ij lHkh Iykuk sa dh tkudkjh izkIr gk s ldAs ¼¼¼¼vvvvkkkkjjjjttttvvssvvss kkkkbbbb,,ZZ,,ZZ yyyy½½½½ ¼vii½ bVa jfsDVo ocs vk/kkfjr eYw ; lk/ku@eYw ; x.kd ij fopkj fd;k tk ldrk gAS izkf/kdj.k fdlh r`rh; i{k }kjk vujq f{kr ,slh ocs lkbVZ k sa d s iRz;k;u d s fy, ,d i.z kkyh dh LFkkiuk dj ldrk g S ¼¼¼¼vvvvkkkkjjjjttttvvssvvss kkkkbbbb,,ZZ,,ZZ yyyy rrrrFFFFkkkkkkkk ,,,,eeeevvvvkkkkjjjj,,,,QQQQ½½½½ ¼viii½ izhiMs miHkkDs rkvks a d s fy, i'z kYq d e sa of`) l s lqj{kk gsr q ektS wnk Ng ekg dh fofufn"ZVrkvk as dk s vk'kkfs/kr dj 12 l s 24 ekg fd;k tk ldrk gAS ¼ix½ fcfyxa vkSj ehVfjxa rFkk y[s kkijh{kk] izkf/kdj.k }kjk fu;Dq r rFkk Hkxq rku fd, tku s oky s ys[kkijh{kdkas }kjk dh tkuh pkfg, ¼¼¼¼,,,,eeeevvvvkkkkjjjj,,,,QQQQ½½½½ ¼x½ i'z kYq d lca /akh i's kd'k dks LFkkuh; Hkk"kkvksa eas Hkh iznf'kZr fd;k tkuk pkfg,A ¼¼¼¼QQQQMMssMMss jjjj''ss''ss kkkkuuuu vvvvkkkkWWQQWWQQ ddddUUUUTTTT;;;;eewweeww jjjj ,,,,....MMMM llllffffoooollZZlZlZ vvvvkkkkxxxxuusZsZuusZsZ kkkkbbbbtttt''ss''ss kkkkuuuu½½½½ ¼xi½ ,sl s miHkkDs rk tk s i's kd'k fd, tku s oky s i'z kYq dk sa dh l[a ;k l s Hkfzer gk s tkr s g]Sa mudk s /;ku e as j[krs g,q Hkh fdlh Vh,lih }kjk i's kd'k fd, tku s oky s i'z kYq dk sa dh vf/kdre la[;k e sa vkSj deh fd, tku s dh flQkfj'k ugh a dh tkrh g S D;kfsad bll s uokUses"k vkSj ifzrLi/kk Z dju s gsr q Vh,lih dh {kerk ckf/kr gkxs hA ¼¼¼¼uuuu''ss''ss kkkkuuuuyyyy VVVVyyssyyss hhhhddddEEEE;;;;uuwwuuww hhhhdddd''ss''ss kkkkUUUUllll ~~ ~~ jjjjXXssXXss;;;;yywwyyww VVssVVss jjjjhhhh vvvvFFFFkkkkkkkkffffjjjjVVVVhhhh¼¼¼¼,,,,uuuuVVVVhhhhvvvvkkkkjjjj,,,,½½½½]]]] bbbbffffttttIIIIVVVV½½½½AAAA 7-3 [[[[kkkkyyqqyyqq kkkk eeeeppaappaa ppppppppkkkk ZZ ZZ d s nkSjku ikjnf'kZrk d s igy s vkSj ektS wnk fofu;ked mic/akk@sa mik;k sa dh i;kIZrrk d s lkFk&lkFk lca fa/kr fo"k;k sa ij foLrkj l s ppk Z dh xb Z %& ¼d½ dNq Vh,lih ¼,;jVys ] vkbfM;k] Vys hukWj rFkk ,;jlys ½ u s vko';drk vk/kkfjr Iykuk as rFkk lXsefasVM Iykuk as ds eíq k as dk s mBk;k vkSj vU; m|kxs k sa e sa leku i)fr;k sa dk mnkgj.k nds j bl s vkfSpR;i.w k Z Bgjk;k tSl s gkVs y vkSj ,;jykbu vkfnA;g i{k j[kk x;k fd ipz kj vkSj@vFkok ektS nw k miHkkDs rkvk sa dk s cuk, j[ku s d s fy, i's kd'k fd, tk jg s Iyku rFkk NVw dk s izdkf'kr fd, tku s vkSj Hkknfwoizk d s ikl nkf[ky dju s dh dkbs Z vko';drk ugh a gAS pfwad bll s NVw fn, tku s dk eyw i;z kstu fu"Qy gk s tk,xkA ijar q ogh a mUgksau s dgk fd ;g u, miHkkDs rkvk sa dk s i's kd'k fd, tk jg s i'z kYq d ij ;g ykx w gksuk pkfg,A rFkkfi] vU; Vh,lih ¼vkjtvs kb,Z y rFkk ch,l,u,y½ vkSj miHkkDs rk i{k us bld s ifzri{k esa rdZ fn;k fd ikjnf'kZrk dk fl)kar i's kd'k fd, tk jgs lHkh i'z kYq dk sa ij ykx w gkxs k] pkg s ,slk] miHkkDs rk dk s viu s usVod Z e sa cuk, j[ku s vFkok u, miHkkDs rk izkIr dju s d s fy, fd;k tk jgk gkAs8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] ¼[k½ miHkkDs rk d s ifji{zs ; ls] ppkZ d s nkSjku ;g Hkh mHkjdj lkeu s vk;k fd ,ls h i.z kkyh gksuh pkfg, ftle sa lHkh Iyku] ftl s miHkkDs rkvk sa dk s i's kd'k dh xb Z gk]s dk s ,d lkekU; IyVs Qke Z ij miyC/k gksus pkfg,A miHkkDs rkvks a dk s lHkh ;kts ukvk sa dk v/;;u dju s rFkk ;g p;u dju s d s fy, l{ke gkus k pkfg, fd mld s fy, D;k lokÙZs ke g S vkSj og ,ls k ikjn'kh Z rjhd s l s dj ik,A vf/kdk'a k miHkkDs rk i'z kYq d Iyku vkSj i's kd'kk sa dk s le> ikus e sa vleFk Z gASa o s lk/kkj.k rjhd s l s ;g tku ik, a fd mUkd s }kjk fd, x, Hkxq rku d s cny s mUgsa dkSu lh lsok, a izkIr gkxsa hA fofu;ked izkf/kdj.k lHkh i'z kYq dk as dk s ,d LFkku ij j[k ldrh g S rFkk ;g lfquf'pr dj ldrh g S fd fdlh eueku s oxhdZ j.k rFkk i's kd'k ds ek/;e l s miHkkDs rkvkas dks bld s vykok fdlh Hkh izdkj dh i's kd'k ugha dh tk,A ¼x½ miHkkDs rkvk sa u s dfri; vU; eíq k sa dk Hkh mnkgj.k fn;k tSl s IykWu dk s cnyu s l s igy s Vh,lih }kjk lgefr ugh a yus k] udkjkRed fcfyxa dk eíq k vkSj fcuk miHkkDs rk d s lKa ku es a yk, udkjkRed 'k"sk jkf'k dk vxy s fjpkt Z e as lek;kts u fd;k tkuk] *vufyfeVMs IykWu* dk Hkzked ipz kj djuk vkSj fuc/aku vkSj 'krksZ a dk s NkVs s v{kjk sa e sa Hkzked :i l s idz kf'kr fd;k tkukA ;g vuqjk/sk fd;k x;k Fkk fd i;kZIr j{kkRed mik; 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s dsoy pfquank xzkgdksa dk s i's kd'k dh tkrh gAS (iv) vfoHksn dh ifjHkk"kk vkSj foLr`r dh tkuh pkfg, vkSj fo'k"sk J.s kh ;k oxhdZ j.k e sa 'kkfey gksu ss d s fy, lHkh xzkgdk sa dk s ,dleku volj egq ;S k djk, tkus pkfg, c'krsZ fd o s ekunMa dks iwjk djr s gksAa ¼¼¼¼,,,,eeeevvvvkkkkjjjj,,,,QQQQ½½½½ (v) vkQW j dsoy u, miHkkDs rkvk sa d s fy, g Sa vkSj ;g ektS wnk miHkkDs rkvks a l s i{kikr ugh a c<+rk g S ¼¼¼¼QQQQMMssMMss jjjj''ss''ss kkkkuuuu vvvvkkkkWWQQWWQQ ddddTTaaTTaa ;;;;eewweeww jjjj ,,,,MMaaMMaa llllffffoooollZZlZlZ vvvvkkkkxxxxuuZZuuZZ kkkkbbbbtttt''ss''ss kkkkuuuu ,,,,MMaaMMaa ,,,,eeeevvvvkkkkjjjj,,,,QQQQ½½½½ ?k½ vvvvkkkkbbbbZlZlZlZlhhhhvvvvkkkkjjjjvvvvkkkkbbbbbbZZbbZZ vvZZvvZZ kkkkjjjj u s ik;k fd ^^fofu;ked nf`"V l s vfoHkns d s lca /ak e sa mu i)fr;k sa dh ,d uxs fsVo fyLV vkWQj djuk cgs rj gkxs k] ftu ij iwjh rjg l s ifzrc/ak gASa VfSjQ dh mPp xfr'khyrk okyh idz `fr vkSj miHkkDs rk ekxa dk s ns[kr s g,q LkHkh idz kj d s vueq ;s vkSj xSj&vueq ;s eYw ; foHkns dk s 'kkfey djuk yxHkx ukeeq fdu gAS blfy, eYw ; 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e sa izklfaxd ugh a g S vkSj bl s NkMs + fn;k tkuk pkfg,A ckgj dh lHkh dia fu;ks a dk s VfSjQ :ij[s kk l s lca fa/kr vuiq kyu d s ekey s es a cjkcj ekuk tkuk pkfg,A bll s ifzrLi/kh Z iHzkkodkfjrk c<x+s h vkSj leku volj lfquf'pr gkxsa As ,l,eih ekunMa Hkkjrh; nwjlpa kj cktkj e as vc izklfaxd ugh a jg x;k g S blfy, bl s lekIr fd;k tkuk pkfg,A (viii) vvvvkkkkbbbbZlZlZlZlhhhhvvvvkkkkjjjjvvvvkkkkbbbbbbZZbbZZ vvZZvvZZ kkkkjjjj u s dgk g S fd ^^cktkj 'kfDr dk fu/kkZj.k dju s d s fy, ekdsZV 'k;s j ;k ykHk ekftZu dk bLres ky dj jg s cgiq {kh; cktkj d s dkj.k Hkzked urht s vk ldr s gSAa cgiq {kh; IyVs QkEk Z d s fy, vkfFkdZ ifzrQy dh nj cktkj 'kfDr dk ,d vkd"kdZ mik; g S D;kfsad ;g ml lhek dk vkdyu djrk g S ftl rd IyVs Qke Z leFk Z gk s ldrk g]S vkSj bl s ;g ifzrLi/kh Z ifzrQy l s vf/kd deku s d s fy, bld s cgiq {kk sa d s fy, eYw ; r; djds djrk g^S^A (ix) MMMMkkkkWW--WW-- nnnnccssccss nnnnÙÙÙÙkkkkkkkk ''''kkkkkkkkgggg]]]] iiiizkzkzkzkQQssQQss slslslsljjjj]]]] nnnnffff{{{{kkkk....kkkk ,,,,ffff''''kkkk;;;;kkkkbbbb ZZ ZZ ffffoooo''''ooooffffoooo||||kkkkyyyy;;;;]]]] ffffnnnnYYYYyyyyhhhh fy[kr s gSa fd ^^iHzkRqo@,l,eih dk s ifjHkkf"kr dju s e sa ge xfrfof/k;k sa dh pkj Jfs.k;k@sa vk;keksa dk Li"V :Ik l s mYy[s k djr s gSa] ftld s MVs k dk fo'y"sk.k fd;k tkuk pkfg,] uker% miHkkDs rk vk/kkj] VuvZ ksoj] fLofpxa {kerk vkSj VªSfQd okWY;ew A bue sa ls miHkkDs rk vk/kkj vkSj VfªSQd vk/kkj ekxa i{k d s pj ¼lsok18 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] vkSj igpqa vk;kek]sa nksuks a e½sa gASa VªfSQd okWY;ew dk okLrfod ekiu dju s d s fy, dyq vkWu&usV vkSj vkWQ&uVs dkWYl dk fo'y"sk.k ;g ns[ku s d s fy, fd;k tkuk pkfg, fd D;k Vh,lih d s vf/kd lxa Bu ;k xarO; dkWYl gASa fLofpxa {kerk vkSj VuvZ ksoj Vh,lih }kjk usVod Z e sa fd, x, fuo's k l s tqM +s g Sa vkSj ; s vkifwr Z i{k d s izk|S kfsxdh; dkjdk sa d s dk; Z d s lkFk&lkFk ifzrLi/kk Z dh idz f`r gASa bu pjk sa d s ekiu d s fy, iRz;sd Vh,lih }kjk ifzr ,y,l, d s fy, vkofaVr LiDS Vªe] LiDS Vªe dh ykxr] izR;ds Vh,lih dh ifjpkyfud ykxr] volajpuk dh fuo's k ykxr] VªfSQd okWY;ew dk C;kSjk ¼izR;ds Vh,lih d s fy, vkWu&n&usV vkSj vkWQ&n&usV dkWYl½] miHkkDs rk vk/kkj dk MsVk visf{kr gkxs k^^A ¼[k½ vvvvkkkk,,ss,,ss ppppMMMMhhhh dddd ss ss nnnnkkkkSjSjSjSjkkkkuuuu]]]] ffffggggrrrr////kkkkkkkkjjjjddddkkkk sasa sasa ddddhhhh jjjjkkkk;;;;%%%% (i) [kyq k epa ppkZ d s nkSjku] vf/kdka'k Vh,lih u s viuh fyf[kr fVIi.kh d s vu:q Ik viuk rd Z izLrqr fd;kA dNq vkWijVs jksa u s rdZ j[kk fd foÙkh; lgk;rk dh foÙkh; 'kfDr dk s Hkh ,d egRoi.w k Z iSjkehVj d s :Ik e sa fy;k tkuk pkfg,A tcfd vkjtvs kb,Z y u s dgk fd iHzkRqo dk vkda yu djr s g,q @LFkkfir djus le; oreZ ku dia fu;k as ds l;a Dq r iHzkRqo ij Hkh fopkj fd;k tkuk pkfg,A (ii) JJJJhhhheeeerrrrhhhh xxxxhhhhrrrrkkkk ffffllllggaaggaa ,d Lora= ijke'knZ krk us dgk fd ,l,eih dk fu/kkZj.k djrs le; 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,ls s vkWijVs j ij dfri; 'krs Z ykx w djuk g S rkfd nwjlpa kj cktkj e sa fu"i{k vkSj LFkk;h ifzrLi/kk Z lqfuf'pr dh tk ldsAs ([k) izkf/kdj.k u s ,l,eih dks ^^fnukda 12 tyq kb]Z 2002 d s nwjlpa kj bVa jduDs 'ku ¼lna HkZ bVa jduDs V vkWQj½ fofu;e^^ es a ifjHkkf"kr fd;k Fkk ftld s vuqlkj] ^^lsok inz krk ;fn ykblsal'knq k nwjlpa kj lsok {ks= e sa dyq xfrfof/k;k sa dk 30 ifzr'kr 'k;s j j[krk gS rk s mls egRoi.w k Z cktkj 'kfDr ekuk tk,xk-------^^A ^^dyq xfrfof/k^^ e sa miHkkDs rk vk/kkj] VuvZ ksoj] fLofpxa {kerk] vkSj VªfSQd okWY;ew 'kkfey gAS izkf/kdj.k us bl igy q dh tkpa d s ckn ;g fu.k;Z fy;k fd ifzr'kr vk/kkfjr fu/kkZj.k loJZ "sB lHakkfor fof/k gS vkSj ;g b;Z w lfgr db Z n's kk as dh i)fr;ks a d s vu:q i gAS cgjgky] fiMz sVjh izkbflxa d s fy, ,l,eih dk fu/kkZj.k dsoy miHkkDs rk vk/kkj vkSj ldy jkTkLo ij vk/kkfjr gkxs k D;kfsad ; s nk s ekunMa lHkh izk|S kfsxd;k sa e sa izklfaxd vkSj rqyuk ;ksX; gASa vvvvrrrr%%%% iiiizkzkzkzkllllffaaffaaxxxxdddd cccckkkkttttkkkkjjjj dddd ss ss ffffyyyy,,,, ,,,,llll,,,,eeeeiiiihhhh ddddkkkk ss ss mmmmiiiiHHHHkkkkkkkkDDssDDss rrrrkkkk vvvvkkkk////kkkkkkkkjjjj vvvvkkkkSSjjSjSj llllddddyyyy jjjjkkkkttttLLLLoooo eeee ssaa sasa llll ss ss ffffddddllllhhhh ,,,,dddd eeeekkkkuuuunnnnMMaaMMaa dddd ss ss vvvvkkkk////kkkkkkkkjjjj iiiijjjj iiiiffffjjjjHHHHkkkkkkkkffff""""kkkkrrrr ffffdddd;;;;kkkk ttttkkkkuuuukkkk ppppkkkkffffgggg,,,,AAAA ffffiiiiMMzzMMzz VVssVVss jjjjhhhh iiiizkzkzkzkbbbbffffllllxxaaxxaa dddd ss ss ffffyyyy,,,, ^^^^,,,,llll,,,,eeeeiiiihhhh^^^^ ddddhhhh llll''aa''aa kkkkkkkkffssffss////kkkkrrrr iiiiffffjjjjHHHHkkkkkkkk""""kkkkkkkk VVVVhhhhVVVVhhhhvvvvkkkk ss ss eeee sasa sasa ''''kkkkkkkkffffeeeeyyyy ddddhhhh xxxxbbbb ZZ ZZ ggggAASSAASS 13.0 ffffiiiiMMzzMMzz VVssVVss jjjjhhhh iiiizkzkzkzkbbbbffffllllxxaaxxaa ddddkkkk ffffuuuu////kkkkkkkkZjZjZjZj....kkkk%%%% ijke'k Z d s fy, fuEufyf[kr eÌq s izLrqr fd, x, Fk%s • iiiizkzkzkzkllllffaaffaaxxxxdddd cccckkkkttttkkkkjjjj eeee sasa sasa llllsosososokkkk iiiinnzznnzz kkkkrrrrkkkk dddd ss ss ffffiiiiMMzzMMzz VVssVVss jjjjhhhh iiiizkzkzkzkbbbbffffllllxxaaxxaa ddddkkkk vvvvkkkkddddyyyyuuuu ddddjjjjuuuu ss ss dddd ss ss ffffyyyy,,,, ffffooooffffuuuu;;;;kkkkeeeedddd }}}}kkkkjjjjkkkk DDDD;;;;kkkk ffffooooffff////kkkk;;;;kkkk@@aa@@aa iiiiffzzffzzØØØØ;;;;kkkk,,,, aa aa vvvviiiiuuuukkkkbbbb ZZ ZZ ttttkkkkuuuuhhhh ppppkkkkffffgggg,,,,\\\\ 13.1 ffffggggrrrr////kkkkkkkkjjjjddddkkkk sasa sasa ddddhhhh jjjjkkkk;;;;%%%% mfpr ykxr mik;] fof/k vkSj izfØ;k d s lca /ak e sa dNq egRoi.w kZ jk; 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fu/kkZj.k ugh a dj jgk( vkSj lHkh vfuok; Z fofu;ked ykxrksa tSls ,y,Q] ,l;wlh] vkb;Z wlh vkSj los k dj vkSj ifjpkyu d s lHkh vU; dj@ysoh@'kYq d dks ,d lkFk j[kuk^^A ;g Hkh dgk x;k fd ^^,d {ks= e sa izHkRqo dk mi;kxs nwlj s {ks= esa fiMz sVjh izkbflxa dk ykHk mBku s e sa ugh a fd;k tkuk pkfg, ftlls fd ;g cktkj cna gk s tk,A ¼M-½ vvvvkkkkjjjjttttvvssvvss kkkkbbbb,,ZZ,,ZZ yyyy u s dgk fd ^^ fiMz sVjh izkbflxa d s lca /ak e sa Hkkjr e sa ipz fyr dkuwuk sa vkSj varjkZ"Vªh; {k=s kf/kdkj e as fLFkfr d s eÌus tj] fiMz sVjh izkbftxa vkSj {ks= dh rts h l s cnyrh izk|S ksfxfd;k sa ij izkf/kdj.k dh jk; d s vk/kkj ij ge l>q ko nsr s gaS fd% (i) vf/kd ub Z izk|S kfsxdh viuku]s usVod Z vkSj lsokvk sa dk vfHklj.k] vkVs hVh lsokvk]as tk s fu%'kYq d eqg;S k djkb Z tk jgh g]Sa dk s cM +s ieS ku s ij viukus d s n`f"Vxr] ektS wnk ifjn'` ; esa nwjlpa kj {ks= e sa fiMz sVjh izkbflxa d s eÌq s esa iMu+ s dh vko';drk ugh a g S tc rd fd ifzrLi/kkZ jk/skh vkpj.k Li"V :Ik l s LFkkfir u gk s tk,A (ii) izklfaxd cktkj e sa iez [q k fLFkfr@egRoi.w k Z cktkj 'kfDr dk vkdyu] fizMVs jh izkbflxa d s fdlh vuiq kyu ij fopkj dju s dh iwo Z 'kr Z gAS (iii) ykxr l s uhp s eYw ; fu/kkZj.k fiMz Vs jh izkbfLkxa fu/kkfZjr dju s d s fy, i;kIZr ugh a gAS ckn es a vf/kd eYw ; fu/kkjZ .k d s tfj; s gkfu;k sa dk s lHakkyu s dh {kerk d s lkFk nh?kdZ ky e sa eYw ; fu/kkZj.k d s tfj; s izklfaxd cktkj l s ifzr;ksfx;k sa dks lekIr dju s d s bjkn s d s lkFk bl s feyk;k tkuk pkfg,A (iv) fiMz 's ku dk s dsoy rHkh fu/kkfZjr fd;k tk ldrk g S tc bu 'krks Za dk s iwjk fd;k tk,% iez [q k vkiW jVs j] ykxr l s uhp]s izfrLi/kk Z dk s lekIr djuk] ckn e sa gkfu;ksa dk s lHakkyu s dh {kerkA ;fn bUgsa iwjk ugha fd;k tkrk g S rk s izeq[k vkWijVs j rd ds fy, fu.k;Z ;k fiMz 's ku ugh a fy;k tk ldrkA LFkxu d s le; e]sa izkf/kdj.k dk s dsoy fiMz 's ku dh vk'kda k d s vk/kkj ij viuh jk; ugh a cukuh pkfg,^^A ¼p½ MkW- ncs nÙk dk er Fkk fd ^^tgka rd fiMz sVjh izkbflxa dk lca /ak g]S fofu;ked fuEufyf[kr i)fr;ks a dk s ykx w dj ldrk g%S (i) lHkh fgr/kkjdksa dk s fiMz Vs jh izkbflxa dh ,d gh ifjHkk"kk egq ;S k djkuk] tks ifzrLi/kk Z vf/kfu;e] 2002 d s vu:q i gAS (ii) ekfld vk/kkj ij] Hkknfwoizk dk s izR;sd ,y,l, ¼HkkxS ksfyd cktkj½ d s fy, izklfaxd los k J.s kh ¼mRikn cktkj½ gsr q blds eYw ; vkWQj d s fy, iRz;sd Vh,lih dh vkSlr ifjoruZ h; ykxr ¼,ohlh½ dh tkpa djuh pkfg,A (iii) ;fn vkSlr ifjoruZ h; ykxr ¼,ohlh½ Vh,lih d s VfSjQ vkn's k esa fn, x, izklfaxd eYw ; l s de ikb Z tkrh g S rk s fofu;ked dk s bl de eYw ; fu/kZkj.k dk dkj.k Li"V dju s d s fy, Vh,lih dks viu s dk;kyZ ; e sa cqykuk pkfg,A ;fn fofu;ked Vh,lih d s mÙkj l s larq"V ugh a g S rks Vh,lih dk s psrkouh nds j rqjar izHkko viu s viu s VSfjQ vkn's k okil ysu s d s fy, dgk tkuk pkfg,A (iv) Vh,lih }kjk vkSlr ifjoruZ h; ykxr ¼,ohlh½ l s de eYw ; fu/kkZj.k d s dkj.k miHkkDs rk ekxa ij rkRdkfyd fLoxa iHzkko dk s fiNy s ekg d s MVs k dh rqyuk e sa miHkkDs rk vk/kkj e sa of`)'khy c<+ksrjh dh tkpa djd s vkSj izkjfaHkd vkSj MLs Vhu's ku dkWYl d s varj dh tkpa djd s tkuk tk ldrk gAS bl fLoxa iHzkko e sa dkbs Z egRoiw.k Z of`) ¼30 ifzr'kr l s vf/kd½ ij fofu;ked loky mBk ldrk gS D;kfsad bll s cktkj esa ifzrLi/kk Z ij Ik;kZIr ifzrdyw iHzkko ¼,,bZlh½ d s lekIr gksus dh lHakkouk gAS (v) lsokvk sa d s lHkh e¶q r vkWQj dk vkSfPkR; fofu;ked dk s crk;k tkuk pkfg, ¼cdzs d s fy, fctul Iyku&Vh,lih d s vkWQj tSl s e¶q r lsok, a d s fy, Hkh½ izksek's kuy vkWQj d s lkFk] ; s e¶q r vkWQj d s fy, ekg dh ,d Åijh lhek gksuh pkfg, rkfd ;s egRoi.w k Z :Ik l s ifjorZu'khy cktkj e sa ifzrLi/kk Z dk s izfrdyw <xa l s iHzkkfor u dj ldAas 13.2 ffffoooo''''yyyy""ss""sskkkk....kkkk vvvvkkkkSjSjSjSj ffffuuuu....kkkk;;ZZ;;ZZ %%%% izklfaxd cktkj e sa ,l,eih }kjk fiMz sVjh izkbflxa dk fu/kkZj.k fuEufyf[kr dkjdksa ij vk/kkfjr gkxs k%& (d) eYw ; ykxr l s de g S ([k) izklfaxd cktkj e sa ifzrLi/kkZ ?kVku s ;k ifzr;kfsx;k sa dk s lekIr dju s dk bjknkA 13.2.1 eeeeYYwwYYww ;;;; yyyykkkkxxxxrrrr llll ss ss ddddeeee gggg SSSS d½ lkekU;r% eYw ; fiMz Vs jh rc eku s tkr s g Sa tc egRoi.w k Z cktkj 'kfDr;k a ¼,l,eih½ viu s eYw ; bru s de ij r; djr s g Sa fd bUg sa Ik;kZIr rHkh ekuk tk ldrk g S tc ;g ifzrLi/kkZ dk s de djrk g]S ifzr;ksfx;k sa dk s lekIr djrk g S ;k ub Z cktkj 'kfDr;k as dk s izo's k dju s l s jkds rk gAS ,l,eih dh ,slh izkbflxa ;kts uk bl s cktkj 'kfDr dk s cuk, j[ku s e sa c<+ku s e sa leFk Z cukrh gAS ,l,eih }kjk fiMz Vs jh izkbflxa e sa ifzr;ksfx;k sa dk s cktkj l s ckgj fudyu s ij etcwj dju s d s fy, ykHk dk tkuc>w dj vf/kR;kx fd;k tkrk gAS Dykfld fiMz Vs jh izkbflxa ifjn'` ; e sa ,d oreZ ku ,l,eih viu s eYw ; dk s bld s vkSrl eYw ; l s de r; djd s ubZ cktkj 'kfDr d s izo's k ij ifzrfØ;k n s ldrh g S vkSj yca h vof/k rd20 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] ;g lfquf'pr dju s ds fy, bl s cuk, j[k ldrh g S fd u;k izo's kd gkfu ij dkjkcs kj dju s ij etcwj gks tk,A oreZ ku e sa gks ldrk g S ,l,eih gkfu mBku s dh fLFkfr e sa gks exj u;k izo's kd yxkrkj gkfu d s lkFk viu s dkjkcs kj dk s pyku s dh fLFkfr e as u gk as vkSj ok s cktkj l s fudy tk,A u, izo's kd d s ckgj fudyu s ds ckn] ,l,eih viuh gkfu;k sa dk s iwjk dju s d s fy, viuk eYw ; c<+k ldrk g S vkSj@;k viuh cktkj 'kfDr dk s c<+k ldrk gAS pfwad ykxr d s db Z vk;ke gksr s g]Sa fizMVs jh izkbflxa d s fu/kkZj.k d s fy, ewY;&ykxr fo'y"sk.k d s ifji{sz ; e sa ykxr d s loJZ s"B mik; d s p;u dk i'z u egRoi.w k Z cu tkrk gAS bl lca /ak e sa fuEufyf[kr lda Yiukvk as dk mYy[s k laHkkfor ykxr cpSa ekd Z ds :Ik e s fd;k tkrk gS% (i) llllhhhheeeekkkkarararar yyyykkkkxxxxrrrr¼¼¼¼^^^^^^^^,,,,eeeellllhhhh^^^^^^^^½½½½ vkmViVq dh vfare ;wfuV dh mRiknu ykxr g(S (ii) vvvvkkkkSlSlSlSlrrrr iiiiffffjjjjoooorrrruuZZuuZZ hhhh;;;; yyyykkkkxxxxrrrr ¼¼¼¼^^^^^^^^,,,,oooohhhhllllhhhh^^^^^^^^½½½½ crkrh g S fd ,elh vkSlr] vkmViqV dh nh xb Z jtsa e sa dSl s O;ogkj djrh gAS ,ohlh dh x.kuk mu ykxrks a dh igpku djd s dh tkrh g S tk s vkmViqV d s lkFk cnyrh g]S mUg sa ,dlkFk tkMs +r s g]Sa vkSj mRikfnr ;fwuVk sa dh dqy l[a ;k }kjk ifj.kke Hkkx fd;k tkrk g(S (iii) vvvvkkkkSlSlSlSlrrrr iiiiffffjjjjggggkkkk;;;; ZZ ZZ yyyykkkkxxxxrrrr ¼¼¼¼^^^^^^^^,,,,,,,,llllhhhh^^^^^^^^½½½½ mu lHkh ykxrk sa dk ;kxs g]S ftuls dkbs Z Qe Z dfri; ek=k e sa mRiknu u djd]s mRiknu u dh xb Z ;fwuVk sa dh dqyl l[a ;k dk s foHkkftr djd s cp ldrh gAS ifjgk; Z ykxrsa ifjorZuh; ykxrk sa vkSj mRikn fof'k"V fu;r] exj foQy ugh]a ykxrk sa d s :Ik e sa ifjHkkf"kr dh tkrh g Sa tks vkmViVq dh nh xb Z jtsa dk s mRikfnr dju s es a dh xb Z Fkh; (iv) vvvvkkkkSlSlSlSlrrrr ddddyyqqyyqq yyyykkkkxxxxrrrr ¼¼¼¼^^^^^^^^,,,,VVVVhhhhllllhhhh^^^^^^^^½½½½ Qe Z dh dyq ykxrk sa & dkWeu ykxr lfgr ifjorZuh; tek fu;r& dks mRikfnr ;fwuVks a dh dyq l[a ;k l s Hkkx nds j fudkyh tkrh gSA dkWeu ykxr sa o s fu;r ykxr sa g Sa tk s xfrfof/k;k as dh l[a ;k ;k mRikn ykbuk as dh lgk;rk djrh gASa mnkgj.k d s fy, dia uh d s fjlIs'kfu"V dk osru ,d dkWeu ykxr gAS ;g ,d vfuok; Z fLFkfr Hkh g S exj osru dk dkbs Z Hkh Hkkx vdys s fdlh fof'k"V mRikn d s dkj.k ugh a gksrk gAS [k½ varjkZ"Vªh; Lrj ij vf/kdk'a k ns'k nwjlpa kj vkSj vU; {ks=k sa e sa fiMz Vs jh izkbflxa dk fu/kkZj.k dju s d s fy, ,ohlh dk mi;kxs djr s gASa vkbZlh,u d s lkro sa okf"kdZ lEeys u e sa izLrqr ;uw hysVjy dMa DV ofdxZa xizq ] bVa ju's kuy dia hfV'ku usVod Z }kjk fiMz Vs jh izkbflxa ij r;S kj dh xb Z fjikVs Z d s vuqlkj] 34 e sa l s 27 n's kk sa esa] fiMz sVjh izkbflxa dk fu/kkZj.k dju s d s fy, cpSa ekd Z ykxr d s :Ik e as ,ohlh dk mi;kxs fd;k tk jgk gAS Hkkjrh; ifzrLi/kk Z vk;kxs ¼lhlhvkb½Z us Hkh fiMz sVjh izkbflxa fu/kkfZjr dju s ds fy, lhekar ykxr d s izkWDlh d s :Ik e sa ,ohlh dk mi;kxs fd;k g S {lhlhvkb Z dh en l[a ;k 3 (mRiknu dh ykxr dk fu/kkZj.k) fofu;e] 2009 ns[k}sa xxxx½½½½ iiiizkzkzkzkffff////kkkkddddjjjj....kkkk ddddkkkk ffffooooffffHHHHkkkkUUUUuuuu ddddkkkkjjjjddddkkkk sasa sasa ttttSlSlSlSl ss ss yyyykkkkxxxxkkkkrrrr ffffoooooooojjjj....kkkk ddddhhhh mmmmiiiiyyyyCCCC////kkkkrrrrkkkk]]]] iiii;;zz;;zz kkkkttssttss uuuu dddd ss ss ffffyyyy,,,, mmmmuuuuddddhhhh ffffoooo''''oooolllluuuuhhhh;;;;rrrrkkkk vvvvkkkkSSjjSjSj iiiizkzkzkzkllllffaaffaaxxxxddddrrrrkkkk ddddhhhh ttttkkkkppaappaa dddd ss ss cccckkkknnnn ;;;;gggg jjjjkkkk;;;; 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xkso- ek; xkso- 5 veu egktu vuhrk oek Z vutq flga vfadr izrki flag viwo Z 'kek Z v'kkds fNCcj ,'s o;k Z cyoar esgrk nhid diwj nsoUsn z dkpa h MkW lkfsod pVth Z duu lFkhlus ,e ,l dkpa h ,dy O;fDr ¼Jh@lJq h½ e/kfqydk 'kek Z 35 fefr uezrk 'kek Z xizq dISVu jtuh'k HkkfV;k ih- HkkfV;k izhfr jtuh'k jkt HkkfV;k j{kk deq kjh ,l- v;;~ j24 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] lta ho deq kj flag lhek pk/Skjh lfqprk egktu luq hy deq kj lfqjUn z dkpa h l'q khy deq kj Vh oh jkepanuz mn; f'kukW; mnHko vxzoky o'S kkyh flag foHkk flag fodkl deq kj flag food s jokuh ;;;;kkkkxxssxxss 57 iiiiffzzffzzrrrr&&&&ffffVVVVIIIIiiiiffff....kkkk;;;;kkkk aaaa ffffggggrrrr////kkkkkkkkjjjjddddkkkk sasa sasa dddd ss ss lllleeeeggwwggww ffffggggrrrr////kkkkkkkkjjjjddddkkkk sasa sasa dddd ss ss uuuukkkkeeee iiiizkzkzkzkIIIIrrrr ffffVVVVIIIIiiiiffff....kkkk;;;;kkkk sasa sasa ddddhhhh llll[[aa[[aa ;;;;kkkk vkjtvs kb,Z y nwjlpa kj lsok iznkrk 2 Hkkjrh ,;jVys lxa Bu vkbZlhVh jkcs ksV 1 vvvvuuuuyyqqyyqq XXXXuuuudddd&&&&2222 ffffuuuu////kkkkkkkkffZZffZZjjjjrrrr ffffrrrrffffFFFFkkkk;;;;kkkk sasa sasa dddd ss ss cccckkkknnnn iiiizkzkzkzkIIIIrrrr ggggkkkkuussuuss ss ss ooookkkkyyyyhhhh ffffVVVVIIIIiiiiffff....kkkk;;;;kkkk sasa sasa ddddhhhh llllppwwppww hhhh ffffggggrrrr////kkkkkkkkjjjjddddkkkk sasa sasa dddd ss ss lllleeeeggwwggww ffffggggrrrr////kkkkkkkkjjjjddddkkkk sasa sasa dddd ss ss uuuukkkkeeee iiiizkzkzkzkIIIIrrrr ffffVVVVIIIIiiiiffff....kkkk;;;;kkkk sasa sasa ddddhhhh llll[[aa[[aa ;;;;kkkk ,dy O;fDr vfun;~ k lus ¼Jh@lJq h½ ncs nÙk 5 MkW- xhrk xkSjh ,l- Jhjke oh- Jh/kj vkSj jkfsgr izlkn MkW- 'k[s kj 'kkg ¼,ulh,bvZ kj½ vkbZlhvkjvkbbZ vZ kj 5 vkbvZ kbiZ h, lxa Bu@laLFkku ,uVhvkj,& varjk”Vªh; nwjlpa kj fofu;ked] felz Jh ,e- 'kds ju] QMs j's ku vkWQ dTa ;ew j ,Ma lfoZl vkxuZ kbt's ku¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 25 TELECOM REGULATORY AUTHORITY OF INDIA NOTIFICATION New Delhi, the 16th February, 2018 THE TELECOMMUNICATION TARIFF (SIXTY THIRD AMENDMENT) ORDER, 2018 (No. 1 of 2018) No. 312-1/2017-F&EA.—In exercise of the powers conferred upon it under sub-section (2) of section11, read with sub-clause (i) of clause (b) of sub-section (1) of the said section, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), the Telecom Regulatory Authority of India hereby makes the following Order to further amend the Telecommunication Tariff Order, 1999, namely:- 1. (1) This Order may be called the Telecommunication Tariff (Sixty Third Amendment) Order, 2018 (1 of 2018). (2) This Order shall come into force from the date of its publication in the Official Gazette. (3) This Order shall apply to all telecommunication services provided throughout the territory of India including those originating in India and terminating outside India. 2. In clause 2 of the Telecommunication Tariff Order, 1999 (herein after referred to as the principal tariff order), for sub-clause (l), the following sub-clause shall be substituted, namely:- l. “Reporting Requirement” means the obligation of a service provider to report to the Authority any new tariff for telecommunication services under this Order or any change therein, within seven working days from the date of its implementation for information and record of the Authority, after conducting a self-check to ensure that the tariff, including promotional tariff, is consistent with the regulatory principles which, inter-alia, include transparency, non-discrimination and non-predation.” 3. In clause 2 of the principal tariff order:- (a) after sub-clause (b), the following sub-clause shall be inserted, namely:- “ba. “average variable cost” means total variable cost divided by total output during the relevant period;” (b) after sub-clause (db), the following sub-clause shall be inserted, namely:- “dc. “Distinct Telecommunication Services” include (i) Wireline Access Service, (ii) Wireless Access Service, (iii) National Long Distance Service and (iv) International Long Distance Service and any other telecommunication service for which licence is granted;” (c) after sub-clause (k), the following sub-clauses shall be inserted, namely:- “ka. “non-predation” means not indulging in predatory pricing by a service provider having significant market power; “kb. “predatory pricing” means the provision of a Distinct Telecommunication Service in the relevant market at a price which is below the average variable cost, with a view to reduce competition or eliminate the competitors in the relevant market, as determined by the Authority;” (d) the existing sub-clause ka shall be re-numbered as kc; (e) after sub-clause (l), the following sub-clauses shall be inserted, namely:- “la. “relevant market” means the market which may be determined by the Authority with reference to the relevant product market for Distinct Telecommunication Service and the relevant geographical market; lb. “relevant product market” means the market in respect of a Distinct Telecommunication Service for which the licensor grants license to the telecom service providers;26 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] lc. “relevant geographic market” means a market comprising the respective license service area for which the licensor grants license to the telecom service providers to provide Distinct Telecommunication Services.” (f) the existing sub-clauses la, lb and lc shall be re-numbered as ld, le and lg, respectively; (g) after sub-clause (le) but before sub-clause (lg), as re-numbered, the following sub-clause shall be inserted, namely:- “lf. “significant market power (SMP)” means a service provider holding a share of at least thirty per cent. of total activity in a relevant market; Explanation–Total activity shall be determined on the basis of either subscriber base or gross revenue.” (h) after sub-clause (r), the following sub-clause shall be inserted, namely:- “ra. "Total cost' means the total cost with regard to telecom services, is the cost of provision of service including items such as employee cost, administrative cost, sales and marketing cost, maintenance cost, network operating cost, government charges, depreciation and amortization, finance charges and other cost attributable to the service during the referred period; rb. "Total variable cost' means the total cost minus the fixed cost and share of fixed overheads, if any, during the relevant period.” rc. "Transparency' means the disclosure of all relevant information of every tariff plan by the service provider which enables the consumer to make an informed choice. The disclosed information, inter alia, is to be accessible, accurate, comparable, complete, distinct and identifiable, explicit and non-misleading, simple and unambiguous.” (i) the existing sub-clauses ra, rb and rc shall be re-numbered as rd, re and rf, respectively; 4. In clause 7 of the principal tariff order, for exiting sub-clause (iii), the following sub-clause shall be substituted, namely:- “(iii) If a service provider fails to comply with the Reporting Requirement, it shall, without prejudice to the terms and conditions of its licence, or the provisions of the Act or rules or regulations or orders made, or directions issued, thereunder, be liable to pay five thousand rupees, by way of financial disincentive for every day of delay subject to a maximum of two lakh rupees as the Authority may by order direct; The Authority may, on reference from any person or suo motu, examine the tariffs of a SMP to determine the existence of predatory pricing. The Authority may, after providing detailed reasons, disallow the relevant tariffs if they are found to be predatory. In case of tariff being found predatory, the service provider shall, without prejudice to the terms and conditions of its licence, or the provisions of the Act or rules or regulations or orders made, or directions issued, thereunder, be liable to pay by way of financial disincentive an amount not exceeding fifty lakh rupees per tariff plan for each service area as the Authority may by order direct. Provided that no order for payment of any amount by way of financial disincentive shall be made by the Authority unless the service provider has been given a reasonable opportunity of representing against the contravention of the tariff order observed by the Authority.” 5. For clause 10 of the principal tariff order, the following clause shall be substituted, namely:- “10. Non-discrimination - No service provider shall, in any manner, discriminate between subscribers of the same class and such classification of the subscribers shall not be arbitrary: Provided that every classification between subscribers shall be based on intelligible eligibility criteria where such criteria shall have a rational nexus to the purpose of the said classification. Provided further that tariff in the nature of vertical price squeeze shall be a case of discriminatory tariff.”¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 27 Note.1.–The Telecommunication Tariff Order, 1999 was published in the Gazette of India, Extraordinary, Part III, Section 4 under notification No.99/3 dated 9th March, 1999, and subsequently amended as given below: Amendment No. Notification No. and Date 1st 301-4/99-TRAI (Econ) dated 30.3.1999 2nd 301-4/99-TRAI(Econ) dated 31.5.1999 3rd 301-4/99-TRAI(Econ) dated 31.5.1999 4th 301-4/99-TRAI(Econ) dated 28.7.1999 5th 301-4/99-TRAI(Econ) dated 17.9.1999 6th 301-4/99-TRAI(Econ) dated 30.9.1999 7th 301-8/2000-TRAI(Econ) dated 30.3.2000 8th 301-8/2000-TRAI(Econ) dated 31.7.2000 9th 301-8/2000-TRAI(Econ) dated 28.8.2000 10th 306-1/99-TRAI(Econ) dated 9.11.2000 11th 310-1(5)/TRAI-2000 dated 25.1.2001 12th 301-9/2000-TRAI(Econ) dated 25.1.2001 13th 303-4/TRAI-2001 dated 1.5.2001 14th 306-2/TRAI-2001 dated 24.5.2001 15th 310-1(5)/TRAI-2000 dated 20.7.2001 16th 310-5(17)/2001-TRAI(Econ) dated 14.8.2001 17th 301/2/2002-TRAI(Econ) dated 22.1.2002 18th 303/3/2002-TRAI(Econ) dated 30.1.2002 19th 303/3/2002-TRAI(Econ) dated 28.2.2002 20th 312-7/2001-TRAI(Econ) 14.3.2002 21st 301-6/2002-TRAI(Econ) dated 13.6.2002 22nd 312-5/2002-TRAI(Eco) dated 4.7.2002 23rd 303/8/2002-TRAI(Econ) dated 6.9.2002 24th 306-2/2003-Econ dated 24.1.2003 25th 306-2/2003-Econ dated 12.3.2003 26th 306-2/2003-Econ dated 27.3.2003 27th 303/6/2003-TRAI(Econ) dated 25.4.2003 28th 301-51/2003-Econ dated 5.11.2003 29th 301-56/2003-Econ dated 3.12.2003 30th 301-4/2004(Econ) dated 16.1.2004 31st 301-2/2004-Eco dated 7.7.2004 32nd 301-37/2004-Eco dated 7.10.2004 33rd 301-31/2004-Eco dated 8.12.2004 34th 310-3(1)/2003-Eco dated 11.3.200528 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] 35th 310-3(1)/2003-Eco dated 31.3.2005 36th 312-7/2003-Eco dated 21.4.2005 37th 312-7/2003-Eco dated 2.5.2005 38th 312-7/2003-Eco dated 2.6.2005 39th 310-3(1)/2003-Eco dated 8.9.2005 40th 310-3(1)/2003-Eco dated 16.9.2005 41st 310-3(1)/2003-Eco dated 29.11.2005 42nd 301-34/2005-Eco dated 7.3.2006 43rd 301-2/2006-Eco dated 21.3.2006 44th 301-34/2006-Eco dated 24.1.2007 45th 301-18/2007-Eco dated 5.6.2007 46th 301-36/2007-Eco dated 24.1.2008 47th 301-14/2008-Eco dated 17.3.2008 48th 301-31/2007-Eco dated 1.9.2008 49th 301-25/2009-ER dated 20.11.2009 50th 301-24/2012-ER dated 19.4.2012 51st 301-26/2011-ER dated 19.4.2012 52nd 301-41/2012-F&EA dated 19.09.2012 53rd 301-39/2012-F&EA dated 1.10.2012 54th 301-59/2012-F&EA dated 05.11.2012 55th 301-10/2012-F&EA dated 17.06.2013 56th 301-26/2012-ER dated 26.11.2013 57th 312-2/2013-F&EA dated 14.07.2014 58th 312-2/2013- F&EA dated 01.08.2014 59th 310-5 (2)/2013-F&EA dated 21.11.2014 60th 301-16/2014-F&EA dated 09.04.2015 61st 301-30/2016-F&EA dated 22.11.2016 62nd 301-30/2016-F&EA dated 27.12.2016 Note.2. – The Explanatory Memorandum explains the reason for the Telecommunication Tariff (Sixty Third Amendment) Order, 2018. Explanatory Memorandum THE TELECOMMUNICATION TARIFF (SIXTY THIRD AMENDMENT) ORDER, 2018 1.0 Introduction 1.1 The purpose of the present exercise is to review some key regulatory principles of tariff, as laid down in the Telecommunication Tariff Order (TTO), issued in 1999 as amended from time to time and other related Regulations, in the light of changing market conditions and evolving product categories.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 29 1. 2 The Telecom Regulatory Authority of India (TRAI) is mandated by the TRAI Act, 1997 to regulate the tariffs offered by the Telecom Service Providers (TSPs) for their various services. Section 11 (2) of TRAI Act, 1997 reads as under: “Notwithstanding anything contained in the Indian Telegraph Act, 1985 (13 of 1885), the Authority may, from time to time, by order, notify in the Official Gazette the rates at which the telecommunication services within India and outside India shall be provided under this Act, including the rates at which message shall be transmitted to any country outside India: PROVIDED that the Authority may notify different rates for different persons or class of persons for similar telecommunication services and where different rates are fixed as aforesaid, the Authority shall record the reasons therefor.” The telecommunications sector in India has witnessed tremendous changes in the telecom ecosystem consisting of technology, telecom service providers, range of telecom services, market composition, competition, user profile and usage pattern in the last nineteen years since the Telecommunication Tariff Order, 1999 (“TTO”) was first notified. As a result, the TTO itself has gone through numerous amendments to account for these developments (Sixty-two amendments). 1.3 The background and the rationale for undertaking the current exercise is detailed below: 2.0 Background: 2.1 Telecom Tariff Order (TTO). In exercise of the power under Section 11(2) of TRAI Act, 1997, Telecommunication Tariff Order (TTO), 1999 was first notified on 9th March, 1999. The main highlights of the TTO were the limits on tariff, reporting requirements on part of TSPs for new tariff in accordance with specific regulatory principles e.g. transparency, non-discrimination and non-predation to protect the interest of the consumers. In the last 19 years since the TTO was first notified, the telecommunication sector in India witnessed massive changes in the telecom ecosystem in respect of technologies deployed, types of telecom services, market composition, competition, user profile and usage pattern of various telecom services. Amendments to the TTO, 1999 have been made from time to time to reflect the evolving telecommunication landscape. As a result, the TTO was amended sixty two times as on date to reflect the developments in the sector. 2.2 Other Regulations. In addition to the TTO, various Regulations, Directions and Advisories were issued by TRAI from time to time to fulfill the regulatory requirements. For example, the Telecom Consumer Protection Regulations (TCPR), 2012, as amended, from time to time defines the features of various tariff products and also addresses related transparency issues. 2.3 Regulation of Tariff: From Fixation to Forbearance. TTO defines Tariff as “rates and related conditions at which telecommunication services within India and outside India may be provided, including rates and related conditions at which messages shall be transmitted to any country outside India, deposits, installation fees, rentals, free calls, usage charges and any other related fees or service charge.”Initially from the regime of ‘Fixation of tariff rates’, TRAI has moved over the years, to ‘Forbearance with prior Approval stage’ and finally to a ‘Forbearance regime with post-facto reporting obligation’ with regulatory oversight. Currently, except for the tariffs for national roaming, fixed rural telephony, USSD and leased lines, tariffs for all other telecommunication service are under forbearance. This policy of ‘light-touch’ regulation for the tariff framework gives the TSPs, which include Internet Service Providers (hereinafter collectively referred to as TSPs) the freedom to design tariffs according to the prevailing market conditions. This has resulted in emergence of new and innovative products in the market that are designed to provide telecom services at affordable and competitive price to the consumers. 3.0 Regulatory principles governing tariff 3.1 Notwithstanding the extant principle of forbearance, regulatory oversight over tariff is required to ensure the observance of regulatory principles. Accordingly, TRAI examines the tariffs reported to it to ensure their consistency with the regulatory principles. Through the 30th (Thirtieth) Amendment to the TTO issued in 2004, TRAI revised the “reporting requirement'' to be followed by a TSP in respect of any new tariff launched by it and amendments therein. As per this, a TSP is required to report the details of each tariff to TRAI within seven days of its implementation, after conducting a self-check to ensure that the tariff plan(s) is/are consistent30 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] with the Interconnection Usage Charges (IUC) Compliance and regulatory principles in all respects which, inter-alia, include Transparency, Non-discrimination and Non-predation. 3.2 A TSP has the flexibility to decide various tariff components for different service areas of their operation subject to the reporting requirement and adherence to other regulatory guidelines in vogue. Flexibility given to the TSPs by tariff forbearance is a core feature of current tariff framework. At the same time, several regulatory principles have been laid down to ensure protection of consumer interest and orderly growth of the sector. Forbearance and flexibility in respect of tariff are, however, not unbridled and come with an express obligation on the part of TSPs to ensure adherence to the regulatory framework. The primary responsibility to ensure consistency of tariff with the regulatory principles, directions and guidelines rests with the TSPs. The tariff filing provision plays a critical role in this regard, enabling TRAI to monitor the prevalent reported tariffs and effectively intervene, wherever required. 4.0 Requirement of consultation on ‘Regulatory Principles of Tariff’ 4.1 In the year 1999 when the TTO framework was put in place, the telecom sector was primarily voice centric. However, in the recent past, there has been a shift, from voice to data, driven by technological and other factors like change in user profile, proliferation of social media, development of innovative content and applications, falling cost of devices etc. Following are some of the factors that underline the need for a comprehensive review: (a) The TTO was issued in the year 1999, when the telecom sector consisted mainly of fixed-line services and was dominated by Government operators – DoT (subsequently BSNL) and MTNL. Though in the last 19 years, TRAI carried out sixty-two amendments in the Principal TTO to keep pace with the changed circumstances, it was felt that a comprehensive review of the TTO is required to address the changes in the sector in an appropriate manner. (b) The trend towards convergence of services too called for a comprehensive regulatory framework that supports seamless delivery of converged services in a technology neutral environment. The trend towards convergence has also resulted in parallel, but related, shifts in pricing strategies, in particular, the growing prevalence of bundled tariffs. For example, converged services like triple-play offerings (video, voice and data) are often accompanied by a bundled pricing approach. Initially, telecom services predominantly meant delivery of voice through telecom network. In the recent past, offer of bundled services – voice and data – have become the main feature of tariff offerings by the TSPs. Bundled services are offered through composite tariff offer. (c) There are certain principles that have been explicitly defined in the TTO, like the term “non- discrimination”, which is one of the key regulatory tariff principles. Clause 2(k)) of the TTO defines it as, “k. ‘Non-discrimination’ means that service providers shall not, in the matter of application of tariffs, discriminate between subscribers of the same class and such classification of subscribers shall not be arbitrary”. The terms such as “class” in the definition are to be explained and other principles like ‘transparency’, ‘non-predation’, required further elaboration in the context of retail tariff. 4.2 Despite the amendments made in the TTO and other regulations to factor in the various market developments, a need was felt by TRAI to undertake a comprehensive review of the regulatory framework of tariff, albeit in a phased manner, starting with a discussion on the core regulatory principles enshrined in the TTO, Directions and Advisories etc issued by TRAI. The consultation process was in line with the decision taken in the meeting held with the CEOs of the Telecom Service Providers (TSPs) on 6th January 2017 to discuss the annual calendar of activities of TRAI for the year 2017, which, inter-alia included developing a new framework for tariffs in evolving telecommunication sector and on which there was a consensus. The process aimed to bring about greater clarity in interpretation of various regulatory principles set out in the TTO and other related regulations etc. in consonance, inter alia, with the best global practices. 5.0 Consultation Process 5.1 The consultation paper titled ‘Regulatory Principles of Tariff Assessment’ dealing with emergent issues and challenges, inter-alia, related to regulatory principles of tariff assessment e.g. transparency, promotional offers, disclosures and non-discrimination, adherence to the principle of non-predatory pricing, meaning of predatory pricing, relevant market, assessment of dominant position etc., was uploaded on TRAI's website (www.trai.gov.in) on 17th February 2017. The written comments on the issues raised in the consultation paper were invited from the stakeholders by 17th March 2017 and counter-comments by 24th¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 31 March 2017. The dates were extended twice on the request of the stake holders and last dates for forwarding comments and counter comments to TRAI, after the extensions were 21st April 2017 and 01st May 2017 respectively. 5.2 A total of 57 comments and 03 counter comments were received up to the extended dates e.g. 21st April 2017 and 01st May 2017 respectively and a summary of the same is placed at Annexure I. An Open House Discussion (OHD) on the Consultation Paper was held on 30th May 2017 at Scope Convention Centre, New Delhi. 5.3 Considering the importance of the subject matter from the perspective of stake holders and requests made in OHD, comments were accepted beyond the last date as research notes, as an exception. Further, efforts were also made by TRAI to obtain views of the other institutions/organizations, including the regulators of other countries. Regulators of other countries were also requested to share the experience, if similar exercise was undertaken by them in the past. The summary of views, comments and counter comments received after the due dates is placed at Annexure II. In addition, TRAI has also extensively studied the relevant articles and similar research literature available in the public domain. 5.4 National Institute of Public Finance and Policy (NIPFP), Delhi had also organized a full day seminar on 23rd May 2017on the issues raised in the Consultation Paper. The eminent scholars, economists, industry and erstwhile senior officers of regulatory bodies like TRAI and CCI along with officers of TRAI participated in the Seminar. 5.5 The Authority held a meeting with CEOs of Telecom Companies on 15th June 2017 and discussed, inter alia, the issue of floor prices. The issue was brought forth by Telecom Companies. Some operators were of the view that there should be some form of floor price in the tariff so that the possibility of predatory pricing be avoided. At the same time this was not agreed by the other TSPs who said that forbearance should continue and there should not be any floor price. One of the operators mentioned that the fixation of floor price by the Regulator would distort the market. 5.6 The Authority had another meeting with the Telecom Service Providers on 21st July, 2017; to exclusively discuss the issue of floor price and whether IUC could be the floor for retail tariffs. After detailed discussion the TSPs were found to be generally in agreement that existing policy of forbearance in telecom tariff should continue for the present. Majority of the telecom players agreed that given the complexities involved in fixation of floor price by the Regulator, it is not an idea worth pursuing at this point of time and that IUC cannot be taken as a floor for the retail tariff. 6.0 Analysis of Issues Raised in Consultation Paper The subsequent parts of this Memorandum present an analysis of the issues raised in the form of eight questions for consultation along with rationale for conclusion and consequent decision of the Authority. 7.0 Adequacy of Transparency Measures and need for additional Measures. 7.1 The following question was asked with reference to the issue of Transparency. • Do you think that the measures prescribed currently are adequate to ensure transparency in the tariff offers made by TSPs? If not, then, what additional measures should be prescribed by the TRAI in this regard? Kindly support your response with justification. 7.2 The stakeholders expressed their views through their comments/counter comments and research notes as detailed below:- (a) Many TSPs (Idea, RCOM, Airtel, Aircel, Tata teleservices and MTNL), AUSPI and many individuals stated that current measures were adequate and found them of being of good standard. These TSPs listed all the steps taken by them to comply with the regulatory requirement and asserted that detailed regulatory compliance in the name of transparency will not be in the interest of industry and consumers. They have asked for certain relaxations in the existing provisions related to publication of tariff, offering to certain classes of consumers, reduction of protection period of six months for the tariff plan and removal of unnecessary restrictions imposed through regulations e.g. the Consumer Protection Regulation, 2012 which specifies types of vouchers that can be provided to pre-paid customers, to cite a few.32 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] (b) On the other hand some TSPs (RJIL, Telenor and BSNL), organisations (MRF, Dua Consulting) and individuals have said that the current measures were not complete and therefore not adequate. They stated that certain offers made by TSPs directly to the consumers through SMS etcwere not transparent. According to them, TSPs offering special plans to selective customers are not even filed with TRAI. According to BSNL, offering special tariff to specific filtered segment of customers which is conveyed only by SMS is a matter of concern. If there is a deviation from the offer, subscribers have no options to complain. Other suggestions by these group of stakeholders to further improve transparency received from stakeholders are listed below:- (i) Instead of the complex term `Transparency’, `Lack of transparency’ should be defined by TRAI. (ii) Easy access of information about tariff or services to make comparisons and informed decisions (MRF, RJIL) (iii) Measures to make sure that an average consumer can interpret and understand the consequences of that information disclosure. (Dua consulting) (iv) Measures for rural consumers to follow the advice of retailers. (Federation of Consumer And Service Organization) (v) Multiple plans can be best addressed by publishing tariff on TRAI website as done by IRDA. (RJIL, MRF and Telenor) (vi) Authority can also offer a comparision tool to see all plans at similar MRP in an area. (RJIL) (vii) Interactive web-based price tool/price calculator can be considered. The Authority may establish a system for the accreditation of such websites maintained by third parties. ( RJIL & MRF) (viii) For prepaid customers, the present stipulation of six months for protection against tariff hike may be modified to 12-24 months. (ix) The Billing and Metering Audit should be carried out by the auditors appointed and paid by the Authority. (MRF). (x) The tariff offers should be displayed in local languages. (Federation Of Consumer And Service Organization) (xi) Considering customers who feel confused by the number of tariffs offered, it is not recommended that any further reductions be made on the cap applied on the number of tariffs offered by a given TSP, as it will hinder the TSP ability to innovate and compete. (National Telecommunications Regulatory Authority, Egypt) 7.3 During the Open house discussion, the aspect of transparency and adequacy of extant regulatory provisions/measures along with the related subject was deliberated at length:- (a) Some TSPs (Airtel, Idea, Telenor and Aircel) raised the issue of tailor made plans and segmented offers and justified the same with example of similar practice in other industries such as Hotel and airline etc. It was argued that plans and discounts offered for promotion and/or for retaining the current customer(s) may not be required to be published and filed with TRAI as that would defeat the basic purpose of giving the discount. But at the same time they stated that this should be applicable to tariffs being offered to new customers. However, there were counter arguments from other TSPs (RJIL & BSNL) and consumers’ side, who argued that the principle of transparency should be applicable to all tariff offers, whether it is for customer acquisition or for customer retention. (b) From a consumers’ perspective, there has to be a mechanism, where all the plans offered to consumers are available on a common platform. It should be possible for the consumer to study all the plans and choose what is best for him. Most customers are not well versed to understand the nuances of tariff plans and offerings. They should be able to ascertain in transparent manner, the¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 33 services that would be provided for the amount paid by them. The regulatory authority can put all tariffs in one place and can ensures that nothing beyond that is offered to customer, on the basis of any arbitrary segmentation and offerings. (c) Consumers have also cited some other issues e.g. TSPs not taking consent prior to change of plans, the issue of negative billing and adjustment of negative balance during next recharge without the customer knowing about it, misleading advertisement of unlimited plan with terms and conditions in fine print etc. It was requested that adequate protective measures be prescribed to deter such undesirable practices. The issue of use/sharing of consumers’ details and related data by TSPs without prior consent of the consumers was also highlighted by consumer with concern. 7.4 Analysis and Decisions. 7.4.1 Transparency in tariff is and has always been an issue of prime concern for the Authority. To protect the interests of the consumers of telecommunications services, the Authority has issued several directions and guidelines in order to ensure transparency in tariff offers. However, despite these measures to ensure transparency in tariffs, the Authority has been receiving complaints from consumers and consumer organizations highlighting, inter-alia, lack of transparency in the tariff offers of TSPs. Common to all these feedbacks is the feeling amongst the consumers that the various tariff offers being made by the TSPs are difficult to comprehend and lack full disclosure. 7.4.2 It has been constant endeavor of the Authority to give due importance to the ‘transparency’ which evident from the extant regulatory provisions and action taken in the past in this regard. The current consultation process, however, has raised certain specific issues which have been analysed as given below: (a) To ensure transparency, the tariff offers of the Telecom Service Providers (TSPs) will be examined on the touchstone of the following criteria: (i) Accessible: Is the information easy to access, find and use? (ii) Accurate: Is it accurate, up to date and can it be checked for correctness? (iii) Comparable: Is it presented in such a way by various providers which allows for easy and sensible comparisons? (iv) Complete. Whether all required information is available? (v) Distinct and Identifiable. Is the tariff offers have distinct characteristics so that it is identifiable by the consumer without any ambiguity? (vi) Explicit and Non-misleading. The tariff offers should not have any implicit or hidden charges or conditions. They should also correctly convey what the consumer would pay and get in terms of service. (vii) Simple and unambiguous: Is the information expressed in units, concepts or terminology that is unambiguous and easy to understand? Have the tariff offers has been communicated in simple terms? (b) Cap on Tariff Plans on Offer. Some TSPs requested removal of the cap on the number of tariff plans. As per the extant regulatory provisions, the number of tariff plans that can be offered by a service provider in each licensed service area at any given point of time is subject to a cap of twenty- five plans, by virtue of the provisions of Twenty First Amendment to the TTO. This includes both postpaid and pre-paid tariff plans. The cap on the number of tariff plans has been prescribed on the premise that too many tariff plans on offer would confuse the consumer and make it difficult for consumers to make an informed choice. Keeping in view of relevant factors, the issue has been further analyzed. It is to be noted that as of now, flexibility in the form of Special Tariff Vouchers (STV), Combo Vouchers (CV), Add on packs is available to TSPs. They have freedom and opportunity to innovate and design their offer suitably to compete in the market. The Authority accordingly has decided that the cap of 25 tariff plans is justified and it should continue. (c) Protection to consumers against hike in tariffs. On the issue of protection of consumers against the tariff hike, there were also divergent views. While most TSPs asked to reduce the34 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] protection time to three months as the need to revise the tariff plan is dynamic and there exists a restriction on number of tariff plans. However, consumers and consumer organizations demanded that the consumers may be given protection for a longer period of 12 months to 24 months. It may be relevant to mention here that the 43rdAmendment to the TTO seeks to prevent too frequent changes in the tariff plans to the consumers and assures tariff stability for a minimum period of six months after enrolment into a tariff plan. This TTO states:- “A tariff plan once offered by an Access Provider shall be available to a subscriber for a minimum period of SIX MONTHS from the date of enrolment of the subscriber to that tariff plan. However, any tariff plan presented, marketed or offered as valid for any prescribed period exceeding six months or as having lifetime or unlimited validity in lieu of an upfront payment shall continue to be available to the subscriber for the duration of the period as subscribed in the plan and in the case of lifetime or unlimited validity plans, as long as the service provider is permitted to provide such telecom service under the current license or renewed license. In the case of plans with lifetime or unlimited validity, the service provider shall also inform the subscribers of the month and the year of expiry of his current license”. Authority has deliberated the issue afresh and is of the opinion that six months’ period (180 days) is optimal period in the existing scenario and it should continue. (d) Direction on publication of Tariff plans. TRAI had issued a Direction on publication of Tariff plans on 16th Jan 2012 to facilitate the subscribers to choose plans that suit individual requirement best. Service providers are required to publish all tariff plans in a service area for prepaid and postpaid subscribers in the prescribed format in one regional and one English newspaper at an interval not more than six months. Full details are to be made available at Customer Care Centre, Point of Sale (PoS), and website in the given format with a view to facilitate easy and transparent comparison. In this respect, most TSPs suggested that TRAI discontinue the practice, as the same does not serve the purpose as the tariff plans are dynamic and need to be seen along with STVs/CVs/ Promotional offers in case of prepaid consumers and Add ons/Promotional offers in case of post paid consumers. The Authority finds merit in the suggestion and has already asked TSPs to come up with alternate measures such as web site to display the tariff plans in English and vernacular languages, mobile applications in English and vernacular languages for the smart phone users and some SMS/USSD based solution for feature phone users (as an alternative to the news paper advertisement). The Authority has found merit in the suggestion of discontinuing the direction for publication of tariffs in NEWS PAPER. Accordingly, Direction on publication of Tariff Plans dated 16th Jan 2012 is being withdrawn separately. (e) Segmented Tariff Offers. (i) With reference to the demand of some of the existing TSPs for allowing segmented offers (as mentioned in paragraph above) and the counter argument of some other TSPs and consumers, the Authority has examined the issues in the light of the extant provision of TTO, TCPR, TRAI Act and the law reiterated by Hon’ble Supreme Court from time to time. (ii) Clause 7 (i) of the TTO provides: “All service providers shall comply with the reporting requirement in respect of tariffs specified for the first time under this Order and also all subsequent changes; PROVIDED that in respect of tariff plans offered by a telecom access provider to bulk customers, such as corporate, small and medium enterprises, institutions etc., either in response to a tender process or as a result of negotiations between the access provider and such bulk customer, the reporting requirement as define in sub-clause (l) of clause 2 shall not apply.” The definition at Clause 2 (l) states: “Reporting Requirement means the obligation of a service provider to report to the Authority any new tariff for telecommunication services under this Order and/or any change therein within SEVEN working days from the date of implementation of the said tariff for information and record of the Authority¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 35 after conducting a self-check to ensure that the tariff plan(s)/are consistent with the regulatory principles in all respects which inter-alia include IUC compliance, non-discrimination and non-predation” This definition applies the requirement to “any new tariff for telecommunication services under this Order or any changes therein”. It is necessary to understand what precisely is required to be reported: new “tariffs” and any “changes” to these tariffs. We must determine whether, under existing law, segmented discounts may be referred to as “tariffs” or whether they qualify as “changes” to tariffs. Similarly, while the non-discrimination principle at Clause 10 of the TTO is a basic requirement placed on TSPs in relation with all kinds of treatment of subscribers, the definition of the term “non-discrimination” at Clause 2 (k) of the same Order applies the principle “in the matter of application of tariffs”. The term “tariff” is defined in the TTO at Clause 2 (r) and in the TCPR at Clause 2 (q). The definitions read as follows: "Tariff(s)" mean(s) rates and related conditions at which telecommunication services within India and outside India may be provided, including rates and related conditions at which messages shall be transmitted to any country outside India, deposits, installation fees, rentals, free calls, usage charges and any other related fees or service charge[.]” (iii) The power of the Authority to regulate tariffs flows from Clause 11(2) of TRAI Act, 1997 which permits classification of customers. However, in the Authority’s view, TSPs must also follow the aforesaid provision in letter and spirit. It has been laid down clearly therein that if different rates are offered for different person or class of persons for similar telecommunication services and where different rates are fixed, the reasons are to be recorded. Hon’ble Supreme Court of India in Cellular Operators Association of India & Ors. v. Telecom Regulatory Authority of India &Ors. AIR 2015 SC 1297 had also upheld the view of TRAI in respect of not allowing arbitrary classification of customers in matters of tariff. (iv) The phrase “rates and related conditions” is a broad formulation and does not differentiate on the basis of the different marketing and sales objectives for which such rates and conditions are set and changed. The definition is comprehensive enough to include rates for international messaging, deposits, installation fees etc. within the meaning of the term. The inclusive list of charges that may be termed “tariff” also includes the term “free calls”. This indicates that the term must be read to cover not just the application of some non-zero charge as a rate but also a rate that amounts to zero rupees. Reduction in a tariff changes the rate at which the service was being provided and applies a new rate altogether. Thus, discounts, rebates and waivers when applied to a tariff would give rise to a new and distinct tariff as envisaged in the definition. This would mean that the offer of a discount is effectively the offer of a new tariff. (v) In view of the foregoing, the Authority after having analyzed the issue is of the opinion that the issue brought out about the tariff plans offered to the individual customers/consumers and which are not filed with TRAI, is a cause of serious concern. Any justification with reference to such violation cannot be accepted. The argument of some TSPs that plans and discounts offered to counter the promotion effort of competitors and for retaining the existing customer(s) may not be required to be published and filed with TRAI as that would defeat the basic purpose of giving the discount, is not acceptable. It was conveyed to them during the OHD itself that the segmentation cannot be arbitrary and non transparent and the basis of segmentation should be clearly spelt out. Therefore, the Authority is of the opinion that segmented offers which have to be necessarily transparent and non-arbitrary, either for retention or acquisition of new consumers, are to be transparently filed with the Authority in accordance with the reporting requirement. All such segmented tariffs are to be publically displayed, inter alia, on the website of the TSPs, for transparent and complete disclosure to consumers, without any discrimination. The Authority has already reiterated aforesaid regulatory requirement vide its Direction to TSPs dated 25th May, 2017.36 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] (f) Independent Audit. As of now the Metering and billing audit is carried out by the audit agencies selected from the panel approved by the Authority for the purpose. The selection of the auditor is done by the concerned TSP and the payment is also made and borne by the TSP. It has been pointed out by different stakeholders with the request that independent audit may be ordered by the Authority for bringing transparency, accountability and credibility of Metering and billing system of TSPs. The Authority finds merit in the suggestion and has decided that in addition of routine metering and billing audit reports filed by the TSPs, snap audit of metering and billing will be carried out by independent auditors appointed by the Authority to check the observance of transparency, accountability and credibility and protection of consumer interests by TSPs. The necessary orders in this regard will be issued separately. (g) Additional Transparency measures. TRAI Direction dated 1st September, 2008, and 48th Amendment to TTO notified on 1st September, 2008 mandate several transparency measures including the restriction on number of black out days, passing the straight tariff reduction to consumers, provision for not insisting on recharge between periods lesser than six months in lifetime plans for remaining connected during the promised lifetime validity period and providing the tariff in vernacular language. Consumers have demanded more such measures whereas TSPs have asked for removal of many of these provisions. The Authority, has decided that these are to continue. The Authority will continue to monitor and may direct additional transparency measures whenever it finds it necessary. (h) Informed decision by consumers. TRAI had issued a Direction for preventing misleading advertisements on 26th March, 2012.This Direction was intended to improve transparency in telecom tariff advertisements and to facilitate subscribers in choosing a plan that best suits an individual requirement. It was mandated that tariff advertisements published by service providers were to be transparent, not misleading and unambiguous, disclose all material information in an unambiguous manner, and contain the website address and customer- care number of the TSPs. The TSPs have to maintain an advertisement register which must include a copy of every tariff related advertisement, and carry out internal audit to ensure that they are complying with all aspects of this Direction. The Authority decides that in the interest of consumers, the existing provisions are to continue. 8.0 Adequacy of definition of non-discrimination and suggestion for additional measures 8.1 The following question was asked with reference to the issue of ‘non-discrimination’ and additional measures to ensure ‘non-discrimination’. • Whether current definition relating to “non-discrimination” is adequate? If no, then please suggest additional measures/features to ensure “non-discrimination”. 8.2 The stakeholders expressed their views through comments and counter comments along with research notes on the issue of current definition of non-discrimination and on the suggestion for additional measures and features to ensure ‘non-discrimination’:- (a) Most of the TSPs, NCHSE, ISPAI, and some individuals stated that current definition and measures are adequate. NTRA, Egypt in its comments has also stated that the current definition relating to nondiscrimination is adequate, and the same regulations have been issued by NTRA to prevent discrimination. (b) Some of TSPs argued strongly in support the segmented and customised offers. They stated that the TSPs had a right to retain the customer and can offer them segmented offers. Some such comments are given below :- (i) TSPs have a legitimate business right to attract more customers through introductory offers, as long as the offers are in compliance with the cardinal principles (of IUC compliance, Transparency, non-predation, and non-discrimination) and any other regulations as applicable. (Airtel) (ii) There is no need to provide information on all offers to all customers as : a. Different subscribers get different offers based on their usage pattern and these are transparently communicated to them.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 37 b. It is not in the competitive interest of the TSPs (Airtel) (iii) The Authority’s concern with regard to discrimination between the new and old subscribers or offers linked to specific handsets doesn’t hold good. (Telenor) (iv) To serve the market requirements, TRAI may only provide broad guidelines and allow the TSP’s to tailor their products to individual subscribers needs. (MTNL) (v) Plans for new subscribers do not amount to discrimination as these terms are applicable to all who come under the category of “new consumer”. (Shri TV Ramachandran) (c) However, MRF, BSNL and many individuals stated that the current definition of non- discrimination is inadequate citing the following reasons:- (i) Many TSPs offer special tariff to individual customers only. (BSNL) (ii) The criteria of such classification are not disclosed. (iii) Offered only to selected customers via SMS/USSD or mobile app. (iv) Definition of non-discrimination should be more elaborate and provide uniform opportunity for all customers to join a particular class or classification provided that they fulfil the criteria (MRF) (v) Offers only meant for new subscribers and not the existing ones amount to discrimination. (Federation of Consumer and Service Organization and MRF) (d) ICRIER has observed that “With regard to approaching non-discrimination from a regulatory perspective, it would be better to offer a negative list of practices that are strictly prohibited. Given the highly dynamic nature of tariffs and consumer demand, it would be nearly impossible to envisage all types of permissible and non-permissible price discrimination. Therefore ex-ante regulations to restrict exploitation using price discrimination may not be the most efficient use of regulatory resources”. (e) Following additional measures/ improvements have been suggested:- (i) MRF has suggested that Service provider should not bundle the tariff plan with particular brand or technology for customer end equipment. However, NTRA, Egypt has opined that preventing promotions or offers that are linked to specific handset or technology as long as effective competition is in place. (ii) Dua Consulting has suggested that the present definition of non-discrimination can be further updated to add: a. That the inter-class difference in the tariff for the same type of service should not exceed a fixed percentage. b. That services of same type should not discriminate between the type, make or technology of the carrier product through which those services are being utilized by the consumer. 8.3 Views of stake holders during OHD. During the open house discussion also, the issue of non- discrimination was extensively discussed and most TSPs (Airtel, Idea and Aircel) argued that the customized offer as per profile of the consumer should be allowed for retaining the customer. It was also argued that the whole definition of discrimination needed to be reviewed because currently customizing offers to individual’s requirement was possible since big data analytics could facilitate such customized application and service. RJIL stated that these customized offers were discriminatory and are also to be treated as promotional offer. 8.4 Analysis and Decisions: (a) Most stakeholders believe that the current definition of non-discrimination is adequate. However there are consumer concerns relating to the monitoring and enforcement of the same. There have been specific concerns on how to understand the term "classes of consumers" with some38 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] stakeholders arguing that there is a need to differentiate discriminatory classification as against reasonable classification. (b) Definition and Adequacy. (i) Clause 2(k)) of the TTO defines Non-discrimination as “Non-discrimination’ means that service providers shall not, in the matter of application of tariffs, discriminate between subscribers of the same class and such classification of subscribers shall not be arbitrary”. (ii) It is an obligation cast on a TSP that while offering retail tariffs to the consumers; it shall ensure that they (tariff) are not discriminatory. However, the issue which arises in the examination of non-discrimination is: what is fair and non-arbitrary classification? (iii) NTRA, Egypt has suggested that the word “arbitrary” in the non-discrimination definition is vague and clear customer classification criteria needs to be put in place so as to enrich the definition. It could be replaced by “the classification of subscribers shall be based on objective criteria such as demographic data, geographical area, usage pattern/consumer profile, customers with special needs, ARPU level, and/or technology used”. (iv) While the expression non-discrimination has been defined in the TTO, it is felt that there is a need to add further clarity into the meaning and interpretation of this term, particularly in the context of distinguishing arbitrary conduct from that which is based on reasonable classification. The Authority had already provided the following in the explanatory memorandum to the 33rdAmendment to the TTO: "Whenever differential tariffs are offered, it shall be the responsibility of the operators to define in a transparent and unambiguous manner the eligibility criteria for availing such differential tariff. The Authority would consider such criteria to assess their consistency with the provisions of TTO relating to non- arbitrary classification of subscribers". (v) Decisions of the Hon’ble Supreme Court of India on this issue are also instructive. The Supreme Court has laid down the twin test in State of West Bengal v. Anwar Ali Sarkar (AIR 1952 SC 75) which states that at first, classification must be based on intelligible differentia and second, the differentia must have a rational nexus to the purpose of classification. This principle has been applied by the Supreme Court in Cellular Operators Association of India &Ors. v. Telecom Regulatory Authority of India &Ors. AIR 2015 SC 1297 wherein it was held that the private telecom operators violated the obligation of non- discrimination set under the TTO, because the basis of classification of subscribers for imposing discriminatory tariffs failed to meet the reasonable classification test laid down in the Anwar Ali case. (vi) Therefore, while retaining the current definition of non-discrimination, a need was felt to amend the TTO to explicitly state the principle which will govern TSPs in the process of classification of subscribers to avoid arbitrariness. (vii) The Authority will apply the tests referred to in Anwar Ali case as discussed above to examine the classification adopted by TSPs and assess whether both the criteria and the purpose are legitimate and objective. Accordingly, the Authority has decided to incorporate the test of reasonable classification as laid down by Hon’ble Supreme Court of India in Clause 10 of the TTO by suitably amending the definition. 9.0 Promotional Offer: Definition, Features and Conditions 9.1 Issue (s) for Consultation:- • Which tariff offers should qualify as promotional offers? What should be the features of a promotional offer? • Is there a need to restrict the number of promotional offers that can be launched by a TSP, in a calendar year, one after another and/or concurrently?¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 39 9.2 Views of Stakeholders contained in Comments/Counter Comments (a) Definition of Promotional offers: Suggestions regarding definition/features of the promotional offers by various stake holders are summarized below:- Stakeholder(s) Definition/Features Airtel, Federation Of Any benefit given over and above the regular/normal plan. Consumer And Service Any offer which is substantially different from any Organization, several company's ongoing offer (in terms of lower tariff, more individuals data, waiver of any charges, or cross selling etc.) BSNL Should generally offer a rebate or concession in fixed cost of services i.e. concession in cost of SIM/concession in activation charges, reduced tariff offer for limited period. Maximum period of promotional offer should be 90 days and validity of concessional tariff should be limited to 60 days only. RCOM Only those tariff offerings, which are available for the consumers or a particular class of consumers with clearly defined eligibility criteria, for a fixed period of 90 continuous days from the date of launch of the offer, should be construed as a promotional offer. Idea, Tata Teleservices, Promotional offers may comprise of free or discounted MTNL, Dua Consulting voice calls, data, talk time, SMS benefits, rebate in rentals, free gifts, etc. subject to them meeting the TRAI cardinal principles of IUC Compliance, Non-discrimination and Non-predation. MTNL Offer given to customer for a limited time with a view to incentivize their subscription and increase their subscribers MRF A new or existing tariff plan which is offered by TSP, to new customers on discounted rate or free with some ingredients such SMS, DATA etc to increase the subscriber base. NCHSE Any tariff offers, over the cap of 25 plans, should be treated as promotional offers RCOM, RJio, Tata The promotional offers as defined by TRAI should be teleservices, AUSPI continued. RJio New player should be able to introduce introductory prices to attract consumers Ms. Seema Chaudhary The benefits offered to customers under packages on offer to a maximum of 90 days from the date of launch which can offer benefits like, unlimited free incoming calls while roaming on network, rebate in recharge, free internet access etc. Shri Sekaram M Sundaram Any extra benefits provided by TSPs to the consumers other than the regular plans, can be considered as Promotional Offers, there is a need to restrict the number of promotional offers.40 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] NTRA, Egypt According to the Egyptian situation, promotions are defined as temporary offers to grant additional benefits to valid tariff and are designed to stimulate and encourage demand. The promotional offers include, but are not limited to, obtaining a reduction in subscription prices or exemption from installation fees or access to additional service features such as higher upload/download speed or higher capacity/quota limits during the period of benefit from the offer. Accordingly, the following features could be used to identify promotions: the duration period (e.g. 30 days), the renewal period/times, eligibility conditions, opening and closing dates, benefit period, subscription process, and the discount rate. (b) Restrictions on Number of Promotional Offers: With regard to the issue of necessity to restrict the number of promotional offers that can be launched by a TSP, in a calendar year, one after another and/or concurrently, the views of stakeholder(s) are given below :- (i) Should be included in 25 plans: Telenor, MRF (ii) Even though such discounts/freebies are part of the base plan, it should also be filed with TRAI as a separate tariff plan under the Promotional category: Telenor (iii) The contours of the Tariff Plan (Promotional) such as the start and end date, price to be paid, subscription charges etc. should be clearly defined. The eligibility criteria and the exit condition should be mentioned: Telenor (iv) Subsequent promotional plans including small modifications to existing plans should only be launched with approval of the authority: Telenor (v) No two Tariff Plan (Promotional) can be offered to the same market segment or class of customers simultaneously: Telenor (vi) Free offer of any kind should be limited to 30 days with no exceptions granted. (Telenor) Completely free tariff plan should not be allowed. MRF (vii) Promotional offers may also be available for existing customers/ subscribers : MRF (viii) A promotional offer when combined with the other regular tariff offerings of the TSP should comply with these three principles (IUC compliance, non-discriminatory and non- predatory) of the telecom tariff: AUSPI. (ix) There should not be any restriction regarding : a. Number of offers in a year or b. Offering promotional offer one after the other :1.BSNL, 2.Aircel, 3.MTNL etc (x) TSPs should be allowed to offer simultaneous promotional offers for different categories of service i.e. voice, messaging and data: Shri TV Ramachandran, AUSPI, R.Com (xi) TSPs should be allowed flexibility to extend or curtail promotional offers depending upon success or failure of the promotion. Ideal solution is to allow promotional offers to run for a period of maximum 6 months: Aircel (xii) No continuous/concurrent/overlap launch for promotional offer should be permitted: 1. Telenor, 2. Dr. Deepa Kapoor, 3.Anita Verma, and Other Individuals. (xiii) There should be a specified gap of say one month/three months between two promotional offers: Shri TV Ramachandran, 2.AUSPI, 3.RCOM, 4.MRF (xiv) Restrictions on number of offers in a year should range from one offer to seven offers : Several individuals¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 41 (xv) “TRAI letter dated 19.06.2002 was merely advisory in nature and not binding whatsoever. Crystallized by direction dated 01.09.2008 where the Authority demonstrated that they have not barred announcing similar promotional offers at the completion of 90 days of a particular offer. The Authority’s only point was that in such circumstances, the promotional offer may be considered a promotional plans and should be counter in the limit of 25…. … No bar on offering simultaneous or consecutive promotional offers, not does it bar it from offering benefits with validity for more than 90 days” (RJIL) (xvi) Dr Shekhar Shah of NCAER, “In goods markets, CCI does not control the number of promotional offers in a calendar year. It is also against the interest of consumers for the TRAI to restrict the number of promotional offers. By and large, consumers gain from promotional offer. By restricting promotional offers, TRAI would put barriers to new entrants who would like to increase market penetration. It basically due to the promotional offer of JIO that data price of internet pack have some come down”. (xvii) ICRIER stated that “In a limited online search we found no evidence of stipulated time periods for implementation of promotional offers, except for one case of proposed legislation in Italy, which recommends the upper limit on contracts with a promotional offer to be two years”.…It further stated that “there is no evidence to suggest that limiting the total number of promotional offers either restricts abuse or promotes competition. Principle-based ex-post analysis would yield better results in controlling abusive practices, if at all, through promotional offers”. 9.3 Views during OHD. These views were reiterated by the TSPs and other stake holders in the OHD.RJIL had raised another issue that all the tariff offers which are offered to the individual consumers and segmented offers should also be treated as promotional offers. It was stated by the RJIL representative that when an operator give promotional offer to all the customer, you want to put a 90 day condition, when an operator want to give it for select few customer without disclosing it, there is no limit or time, that inconsistency is coming into and creeping into this, from our point of view as long as the rule says 90 days, current regulation says that benefits can extend beyond 90 days which is fine because it is transparently told to customer that anyone can come and subscribe to that promotional offer if they so desire, this is part of regular business practice. Every industry gives discount and that is what is being offered. Whatever is the regulation is in vogue should be transparently adhered to and customer should be made aware that this is the promotion which is being given. Beyond that on how many discounts, whether for SMS or data, operator does it with a purpose to either create a market or get new customer or retain existing ones, whatever works best in the business interest of the operator should be allowed. 9.4 Analysis & Decisions. (a) Definition and features of Promotional tariff. (i) Apart from regular Tariff offers that are launched by the various TSPs, ‘promotional offers’ are launched with a view to incentivize consumers in order to retain or increase their subscribers’ base. They are different from the routine tariff offers and are in the nature of benefits available to consumers for a limited period of time. Promotional offers are generally offered to subscribers on special occasions keeping in mind the criteria such as need, profile and usage trend etc. The Authority after having analyzed the extant regulatory provisions, is of the opinion that promotional offers are beneficial to consumers in two ways. (a) They provide additional benefits to customers (b) Promotional Offer by one operator creates a ripple effect and other operators also extend counter offers leading to competition in the market, which in turn is beneficial for the consumers. The benefits offered under promotional offers may vary and can include aspects such as Free SMS, Free/reduced/local STD/ISD rates, Gifts, FMCG products/schemes/vouchers for other products and services etc. Therefore, promotional offers are innovative by nature, generate competition and defining promotional offers in a restricted manner may reduce the scope of designing such offers and benefit to the consumers. (ii) With regard to counting the promotional offers within the overall cap of twenty five if these are offered as tariff plan or Plan voucher, the Authority, after having examined the comments and42 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] suggestions, is of the view that if the promotional offer has been offered as regular plan then it will be counted as tariff plans for the purpose of application of the cap of 25 plans and restrictions of minimum 180 days for benefits to consumers will apply for these plans too. However, such tariff plans cannot remain open for subscription for more than 90 days. (b) Duration. (i) Any of the tariff offering in terms of startup kit, Prepaid/Postpaid Plan, STV, Combo Vouchers, Add on Pack, Top up Vouchers, Rental, etc can be offered as promotional, however the promotional offer should satisfy the twin condition as mentioned in Direction dated 1st September, 2008. In other words, all other conditions that are applicable on each of these products would have to be observed with any relaxation. The Authority in its Consultation Paper on “Issues Arising out of Plethora of Tariff Offers in Access Service Provision” (29th January, 2008), noted that there are generally two kinds of promotional tariffs. The first category is where both the offer as well as the promotional benefit so available for the customer is valid for a limited period and the second category is where the offer may be valid for a period limited to 90 days but the benefits available to the customers may exceed 90 days and can even be indefinite, just like a regular tariff offer. For example, a full-fledged tariff plan offered for subscription for a few days. (ii) Promotional Offer, is not exempt from observance of TTO or TCPR or Directions. (iii) Internationally, not much evidence came to our notice regarding stipulating time period restriction in respect of promotional offers except in few countries like Mauritius (restriction for duration of promotional offers for existing TSP 60 days, for new 30 days), Samoa (90 days total duration of promotional offers for SMPs only) and Rwanda (30 days). However, these are not comparable considering the significant difference in maturity level of telecom sector of these countries vis-à-vis Telecom Service Sector of our Country. In USA, the upper limit for duration promotional offer is 180 days. (iv) The Authority after considering all factors, including, inter alia, consumer interests, maturity of the telecom sector, competition, tariff forbearance and the fact that even promotional tariffs have to satisfy the Tariff principles of transparency, non-discrimination and non-predation opines there is no further need to alter the current minimal definition of the promotional offer as contained in Direction dated 1st September, 2008.The Authority is also of the view that there is no need to further restrict the time period of promotional offer from existing stipulation of 90 days. Currently, while the offer period is restricted to 90 days, there is no restriction on the period of benefit to consumers. Regulatory Principles applicable for regular tariff offers are equally applicable to promotional offers as well. (c) Maximum Number and time lag. The issues of restriction on number of promotional offers and gap between consecutive promotional offers have been examined. The Authority is of the view that no restrictions need to be imposed on the number of promotional offers that can be simultaneously launched and time lag between same or similar promotional offers in a LSA. Restrictions may not be in the interest of consumers apart from possibly hindering competition. Promotional offers are reflection of maturity of competition at most of times and restricting them would amount to interference with market forces. In so far as a promotional offer meets the basic twin requirements in Direction dated 1st September,2008 and Tariff principles and other provisions of TTO/TCPR, it will be permissible. Predatory Pricing and Related Aspects 10.0 The Consultation Paper issued on 17th February, 2017, invited stakeholders to comment on the methods and processes that should be applied by the regulator to assess predatory pricing by a service provider in the relevant market. This was accompanied by related questions -on the manner in which the relevant markets should be delineated, criteria for assessing dominance/ SMP status in each relevant market, method to assess predatory pricing by service provider having SMP. These are discussed in subsequent Paragraphs. 11.0 Relevant Markets. The following question was asked with reference to Relevant Markets. • What should be the different relevant markets – relevant product market and relevant geographic¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 43 market – in telecom services? Please support your answer with justification. 11.1 Relevant Product Market.- (a) Stakeholders’ Views. The TSPs and other stakeholders offered different views on the subject and a summary of significant comments with respect to relevant product markets is given below. (i) BSNL, Idea, Aircel, Tata Teleservices and few individuals, the relevant product market should be (a.) Wireless voice and data services and (b.) Wireline voice and broadband services. Idea also suggested that the relevant product market classification should further be divided based on technology e.g.2G/3G/4G etc. (ii) M/s Dua Consulting suggested to delineate market primarily into retail and wholesale first and then further segment them into voice, data services and combination of voice and data services, which can then be further delineated on the basis of technology (2G, 3G or 4G), and mode of transmission. (iii) RJIL has suggested that the relevant market should be based on the IUC regulations, UL adopted in 2005, the recommendations on spectrum management and licensing framework in 2010 etc. MTNL and R Com opined that the classification should be based on four different service categories, viz. Voice, SMS, Wireless data services and Wireline data services and the same should be defined separately for all 22 relevant geographic markets (LSA). Tata Teleservices suggested that it should be based on retail and wholesale wherein retail market is for services provided to end-users and wholesale market is for wholesale services provided to Small, Medium Enterprises and Large Enterprise. (iv) One TSP (Telenor) stated that current definition and measures are adequate on the basis of Demand side substitutability, Supply side substitutability and Potential Competition. (v) NTRA, Egypt stated that regarding relevant product market, the proposed definition for relevant market is well defined and clear “that market which comprises all the products or services that are sufficiently interchangeable or substitutable”. In addition, the three main sources of competitive constraints identified by European Commission demand-side substitutability, supply- side substitutability and potential competition will be helpful for determining relevant market. (vi) ICRIER stated that “Relevant markets are defined by the end-user and cannot be ascertained ex-ante. It is a dynamic term that varies depending on the purpose of analysis – whether an academic exploration or competitive analysis”. (vii) Dr Debdatta Saha, Faculty of Economics, South Asian University, Delhi stated that “……. a potential product market definition (given convergence in platforms and technologies) can be: (i) premium customers (4G data with voice with national roaming), (ii) medium category customers (2G, 3G data with voice with national roaming), (iii) basic services I (voice only (fixed line services with no roaming facilities) and (iv) basic services II (voice only, wireless and other mobile services, without roaming facilities). This categorization requires data refurbishment on actual consumer base, elasticities of demand with respect to tariff changes in the nature of a SSNIP test and different investments to be made on fixed and wireline services for data services”. (b) Analysis and Decision. The Authority has examined the issue in detail and found no rationale in delineating the market on the basis of products like voice, data and technologies like 2G, 3G or 4G due to fast changing nature of the technology and basic purpose being the transmission. It can be argued that consumers purchase services rather than a technology. Similarly, the pricing and costing policies are aligned with the services for which the license has been obtained. The Authority has considered all the suggestions and global best practices in this regard and acknowledges the fast changing nature of technology, dynamic nature of telecom services and products and bundled offer of services etc. It has been decided that the relevant product market for telecom services in India for the purpose of deciding predatory pricing should be in tune with distinct telecommunication services defined in Unified License and other Licenses granted by the licensing Authority i.e., DOT. Under the category of Access Service two distinct relevant product market (a) wireline access service and (b)44 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] wireless access service have been delineated as the services offered are not regarded as interchangeable or substitutable by the consumer, by reasons of characteristics of services, their intended use and price. Accordingly, the relevant product market for the instant purpose would be (i) Wireline Access Service, (ii) Wireless Access Service, (iii) National Long Distance Service and (iv) International Long Distance Service and any other distinct telecom service for which the licensing authority grants license to the Telecom Service Providers. This approach will be in line with the extant licensing regime and would be appropriate for the above mentioned purpose. 11.2 Relevant Geographical Market. (a) Stakeholders’ Views. The following is a summary of stakeholder comments and views in OHD with respect to relevant geographical markets:- (i) Most TSPs have suggested that Relevant geographical markets should be LSA based (LSA itself or categories of LSAs).Shri Sekaran M. Sundaram has also stated that “Relevant geographic market should be the relevant market in telecom services, which means a market comprising the area in which the conditions of competition for supply of goods or provision of services or demand of goods or services are distinctly homogenous and can be distinguished from the conditions prevailing in the neighbouring areas”.Dr Debdatta Saha, Professor South Asian University, Delhi has also supported this view by stating that “The less controversial issue of relevant geographic market can be retained as “the respective licensed service area (LSA)”, as is in current usage at TRAI. This definition hinges on the fact that there is significant variation between LSA in terms of license fees to warrant differential market treatment by LSA”. (ii) Some Individuals have suggested that relevant geographical market should be based on boundary lines of region or state, as it might create discrimination in a state which is very large. (b) Analysis and Decision. The Authority, after having examined the issue is of the view that in telecom service sector, the license to provide the telecom services have been awarded on the basis of the geographic area called as Licensed Service Area (LSA). The Country is divided into 22 LSA by the DoT and separate license agreements are required to be signed to operate in these LSAs by any TSP. Hence, the relevant geographic market be defined as the LSA itself. This will be in line with the extant license regime. 12.0 Significant Market Player (SMP) in Relevant Markets and Method to determine SMP 12.1 The following questions were asked with reference to the issue of dominance in the relevant markets and assessment of ‘Significant Market Power in each relevant market’ and suggestion for relevant factors:- • How to define dominance in these relevant markets? Please suggest the criteria for determination of dominance. • How to assess Significant Market Power (SMP) in each relevant market? What are the relevant factors which should be taken into consideration? 12.2 Views of Stakeholders. (a) The stakeholders’ views in comments/counter comments and research notesare summarized below:- (i) NTRA, Egypt stated that the factors such as market share in terms of number of subscribers or revenues, control of essential facilities, the ease of access to financial resources, the strength of the countervailing power of consumers, economies of scale and scope, barriers to entry and potential competition, barriers to expansion (spectrum, numbering, or right of ways), strength of brand & brand loyalty, switching customers, bundling offers, customer complaints, vertical integration, the number of direct and non-direct distribution outlets (distribution networks), could be taken into consideration, while assessing the SMP. (ii) AUSPI has opined that the definition of SMP provided under IUC regulations should be applied in a relevant market to determine the SMP of a TSP. Along with the SMP, other factors (as suggested above) should be considered to establish a TSP as dominant in that relevant market.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 45 (iii) Some individuals have also stated that the SMP can be assessed in each relevant market by the market share of enterprise and share in the services provided (IUC Regulations 2003). (iv) Aircel opined that as per the significant market power (SMP) definition covering various services wherein the subscriber base, turnover, switching capacity and traffic volume should be seen. In consonance with the M&A guidelines, 25% share of the total spectrum held in the circle, 50% spectrum assigned in a given band and 50% market share basis subscriber base and AGR should tantamount to qualification of an SMP. Therefore, SMP should be seen holistically to cover both M&A guidelines as well as SMP definition. (v) RJIL opined that the existing provisions of the TRAI regulations sufficiently defines dominance and criteria for determination of dominance. Therefore, there is no need to redefine such criteria. However, there is an urgent need to define and address abuse of joint dominance emerging out of informal cartelization within the market. (vi) MTNL stated that the “dominance” criteria w.r.t. a “relevant product market” may be based on market share, revenue, switching capacity, traffic volume etc. However to determine the dominant position of a TSP in the relevant market, the factors mentioned u/s 19(4) of The Competition Act, including “size and resources of enterprise”, “economic power of the enterprise”, “dependence of consumers on the enterprise”, should also be considered, to ensure application of Competition Act in the relevant market. (vii) Telenor stated that the SMP Criteria is not relevant in today’s market context and should be done away with. All the players in the market should be treated at par as far as compliance to tariff framework is concerned. This will increase competitive effectiveness and ensure level playing field. SMP criterion is no more relevant to Indian telecom market and should be abolished. (viii) ICRIER stated that “In a multisided market using market share or profit margins to determine market power could lead to misleading results. For multisided platforms the economic rate of return is an appealing measure of market power because it assesses the extent to which the platform has been able, through setting prices for its multiple sides, to earn more than a competitive return”. (ix) Dr Debdatta Saha, Professor South Asian University, Delhi writes that “In defining dominance/SMP, we clearly mention four categories/dimensions of activities over which data should be analyzed, namely: subscriber base, turnover, switching capacity and traffic volume. Of these, subscriber base and traffic volume are demand side variables (across both the service and access dimensions). For actual measurement of traffic volume, the total on-net and off-net calls should be analyzed to see if a TSP has more origination or destination calls. Switching capacity and turnover are linked to investments made in the network by the TSP and are a function of supply-side technological factors as well as the nature of competition. The measurement of these variables will require data on: spectrum allotted to each TSP per LSA, cost of spectrum, operational cost of each TSP, investment costs on infrastructure, traffic volume break-up (on-the- net and off-the-net calls for each TSP), subscriber base”. (b) Views of stake holders during OHD. (i) During the open house discussion, most of the TSPs argued on the line of their written comments. Some operators argued that the financial strength or financial support should also be taken as one important parameter, while RJIL stated that joint dominance of the incumbent players should be considered while assessing/establishing dominance. (ii) Smt. Geeta Singh, an independent consultant, stated that the while determining SMP, market share does not really help, as 31% or 29% should not matter. If it is significant as per characteristic of the industry and needs to be investigated we should not just go by market share. 12.3 Analysis and Decisions. (a) Significant Market Power (SMP), as a regulatory concept, has evolved in the context of identifying players that hold a dominant position in a relevant telecommunication market and it imposes specific obligations on them. The concept of SMP flows from the concept of ‘dominance’ developed under the46 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] competition laws. In some jurisdictions, such as EU, the definition of SMP is closely aligned with that of dominance under competition law. The Authority feels that the power to exclude, i.e., the ability of a dominant firm to engage in anti-competitive conduct such as predatory pricing, refusal to share an essential facility, etc. and exclude or deter competitors from the market by the SMP due to dominance is the core issue. An incumbent telecom operator who enjoys Significant Market Power (SMP) can distort the market. Therefore identification of SMP is critical. The basic objective behind this identification is to impose certain obligations on such an operator to ensure fair and sustainable competition in the telecommunication market. (b) The term SMP was defined by the Authority in “The Telecommunications Interconnection (Reference Interconnect Offer)” Regulations, dated 12th July 2002” which states that a “Service Provider shall be deemed to have to have significant market power if it holds a share of 30% of total activity in a licensed telecommunication service area...”. The term “Total activity” here includes subscriber base, turnover, switching capacity and volume of traffic. The Authority after examining this aspect, has decided that percentage based determination is the best possible method and the same is in consonance with practice in many countries including the EU. Further, the Authority has determined that retaining the 30% threshold is appropriate. However, for the purpose of predatory pricing, determining SMP would be based on Subscriber base and Gross Revenue only as these two parameters are relevant and comparable across all the technologies. Hence, the SMP for the relevant market should be defined based on any of the two parameters namely Subscriber Base and Gross Revenue. Revised Definition of ‘SMP’ for the predatory pricing has been included in the TTO. 13.0 Determination of Predatory Pricing. The following issues was put up for consultation • What methods/processes should be applied by the Regulator to assess predatory pricing by a service provider in the relevant market? 13.1 Stakeholders’ views: Some important views with regard to appropriate cost measure, method and process are given below:- (a) While commenting on the method, Bharti Airtel stated that “We believe that predatory pricing, as defined in the tariff orders, is directly related to the absolute cost of producing the service. Thus, predatory pricing can be defined as the offering of a service at a ‘below cost’ rate to end customers by a service provider, irrespective of its market share and size, or the technology used. IUC is an important component of the cost since the originating operator is required to pay the same to the terminating operator for call termination. Therefore, IUC-compliance is important in the context of off-net calls. Thus, any non-IUC compliant off-net tariff is also a predatory tariff”. (b) Reliance Communication stated that: “…….if any TSP leverages its SMP and (or) dominant position in a relevant market to price its services below the cost of provisioning of such services, then such tariffs / services should be considered as “Predatory Pricing‟ by the Regulator. Accordingly, TRAI should examine the cost an operator bears on its own network to provide the voice and data services (per min and per MB cost respectively) and examine the tariffs of the operators in view of such costing to decide whether the tariff is compliant to the principle of non-predatory or not”. (c) “TRAI must also assess predatory pricing not just on the basis of cost data submitted by the concerned TSP but this should be benchmarked against the industry so that a well-balanced average can be determined considering the costs of all players in the market” was the view intimated by Aircel. (d) Idea Cellular stated that “The main steps that are involved in assessment of predatory pricing are: • Delineation of relevant market(s); • Assessment of dominant position / SMP in relevant market;¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 47 • Evaluation of whether the dominant enterprise is resorting to pricing below average industry cost of production for the product/service; and all the mandatory regulatory costs put together such as, LF, SUC, IUC & Service tax and all other taxes/levies/fee in the operations.” It further stated that “Dominance in one sector should not be used to leverage predatory pricing in another sector thereby foreclosing such a market”. (e) RJIL stated that “Considering prevailing laws in India, position in international jurisdictions with regard to predatory pricing, the Authority’s views on predatory pricing and fast changing technologies in the sector, we suggest that: (i) While moving towards newer technology, convergence of network and services, large scale adoption of OTT services which are being offered free of cost, there is no need to get into the issue of predatory pricing in telecom sector in the current scenario unless a clear case of anti- competitive behaviour is established. (ii) Assessment of dominant position/ significant market power (SMP) in the relevant market is pre-requisite to entertain any complaint of predatory pricing. (iii) Pricing below cost is not merely sufficient to establish predatory pricing. The same must be coupled with an intent to eliminate competitors from the relevant market through this act of pricing over a sufficiently long period of time, with the ability to then recoup the losses through significantly higher pricing later. (iv) Predation can be determined only when these conditions are satisfied: dominant operator, below cost, long enough period of time, driving out competition, ability to recoup losses later. Unless these are satisfied, no decision on predation can be taken even for a dominant operator. In the era of forbearance, the Authority must not form an opinion only on gut feeling of predation.” (f) Dr. Debdatta Saha opined that “As far as predatory pricing is concerned, the regulator can implement the following practice: (i) Provide to all stakeholders a common definition of predatory pricing which is in consonance with the Competition Act, 2002. (ii) On a monthly basis, TRAI should conduct an exercise, where it checks the Average Variable Cost (AVC) of each TSP against its price offering for the relevant service category (product market) for each LSA (geographic market). (iii) If the AVC is found to be less than the relevant price mentioned in the tariff order of the TSP, the regulator should invite the TSP to its offices to explain the reason for this low pricing. If the answers of the TSP are not found satisfactory by the regulator, the TSP must be warned and asked to withdraw its tariff order with immediate effect. (iv) The immediate swing effect on consumer demand due to a low pricing below AVC by a TSP can be checked through the incremental addition in the subscriber base over the previous month’s data and by checking the differential of origination and destination calls. Any substantial increase in this swing effect (more than 30 per cent), should be questioned by the regulator as this is likely to end in appreciable adverse effect on competition (AAEC) in the market. (v) All free offers of services should be justified to the regulator (the business plan for break-even by the TSP offering such free services). Along with promotional offers, these free offers should have an upper cap of a month in order not to affect competition adversely in a dynamically changing market. 13.2 Analysis and Decisions. The deliberation referred above the general legal framework for dealing with predatory pricing in India and abroad brings out that the determination of predatory pricing by a SMP, in a relevant market, will be based on the following factors:- (a) Price is below the cost;48 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] (b) Intent to reduce competition or eliminate the competitors in the relevant market. 13.2.1 Price is below the cost. (a) In general, prices are considered predatory when the Significant Market Players (SMP) sets its price so low that it can be considered rational only if it reduces competition, eliminate competitors or deters entry of new market players. Such a pricing strategy by SMP enables it to retain or enhance its Market Power. Predatory Pricing by a SMP involves deliberate sacrifice of profit in order to force competitors to exit the market. In a classic predatory pricing scenario, an incumbent SMP may react to entry of new Market Player by lowering its price below its average cost and sustaining it for a period long enough to ensure that the new entrant is forced to operate at a loss. The incumbent SMP may be in a position to incur the loss but the new entrant may not be able to continue its operation with sustained losses and, thereby, may exit the market. With the exit of the new entrant, the SMP may again raise its price to recover its losses and/or enhance its market power. As cost has many dimensions, the question of selection of best measure of cost in the context of price-cost analysis for deciding predatory pricing becomes important. The following cost concepts in this regard are often mentioned as possible cost benchmarks: (i) Marginal cost (“MC”) is the cost of producing the last unit of output; (ii) Average variable cost (“AVC”) describes how MC behaves, on average, over a given range of output. AVC is calculated by identifying those costs that vary with output, adding them together, and dividing the result by the total number of units produced; (iii) Average avoidable cost (“AAC”) is the sum of all costs that a firm can avoid by not producing a certain quantity of output, divided by the total number of units not produced. The avoidable costs are defined as the variable costs and product-specific fixed, but not sunk, costs that were incurred to produce the given range of output; (iv) Average total cost (“ATC”) is calculated by dividing a firm’s total costs – variable plus fixed, including common costs – by the total number of units produced. Common costs are fixed costs that support a number of activities or product lines. For example, the salary of a company’s receptionist is a common cost. It is an essential position, but no part of the salary is caused by any specific product alone. (b) Internationally, most countries use the AVC for determining predatory pricing in telecom as well as other sectors. As per the report on predatory pricing prepared by Unilateral Conduct Working Group, International Competition Network presented at the 7th Annual Conference of ICN, in 27 out of 34 countries, AVC is used as benchmark cost to decide about predatory pricing. The Competition Commission of India (CCI) also uses AVC as proxy to marginal cost to determine predatory pricing {Point no. 3 of CCI (Determination of Cost of Production) Regulation, 2009 refers} (c) The Authority, after examining the various relevant factors such as availability of cost details, their reliability and relevance for the purpose, is of the view that AVC is the most appropriate cost measure to determine the issue of predatory pricing. A price that is persistently below AVC indicates that the firm is not even covering all its variable costs, let alone its fixed costs. Usually, when a firm incurs such losses over time, it shuts down because continuing to operate would create greater losses than going out of business. Therefore, a firm that stays in business in those circumstances could be considered a predator unless it has a legitimate justification for offering its services at a price below AVC.As per the general practice followed by the regulators in determination of such cases, the AVC will be calculated based on the data available or the requisite cost details which is to be specifically sought and obtained from TSPs for the purpose. The onus of timely submission of cost details of AVC and other relevant documents duly certified by cost Auditors would lie with the TSP concerned. 13.2.2 Intent. The Competition Act, 2002, defines Predatory Price as “the sale of goods or provision of services, at a price which is below the cost, as may be determined by regulations, of production of the goods or provision of services, with a view to reduce competition or eliminate the competitors.” Accordingly a crucial point in analysis of predatory pricing is the value of evidence showing that the SMP has predatory intent, i.e., intent to reduce competition or eliminate the competitors in the relevant market. Some jurisdictions, such as the European Union, expressly incorporate intent in their predation¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 49 analysis along with price-cost tests. Others, such as the United States, are more skeptical towards intent as an indicator of predatory conduct and consequential harm to competition. Proponents of using intent evidence in predation cases tend to support their position by pointing out that business managers, not government agencies or judges, are in the best position to determine whether a predatory pricing scheme is likely to eliminate competition and ultimately be profitable. Since these managers are knowledgeable and rational economic agents, any evidence showing that they intended to carry out a predatory plan or harm a competitor is more reliable than guesswork by outsiders about whether recoupment of losses suffered due to sale below AVC, is likely in future. The Authority is of the view that intent is a vital factor in determining whether the SMP is indulging in the predatory pricing and will examine whether there is evidence of a specific intent to engage in predatory pricing. However, the onus of providing the business rationale of pricing below its AVC and proving that the tariff below AVC is not predatory would lie with the TSP whose tariffs is under examination for predation. 13.2.3 Floor Price and IUC Compliance. The issue of fixation of floor price by the regulator and that whether the IUC can be floor price for retail tariff, was raised and discussed by the TSPs during consultation process including during the OHD and the two meetings referred in Paras 5.5 and 5.6 above. It may be noted that a comprehensive framework to deal with predatory pricing is being prescribed through this TTO. This will restrict anti-competitive behavior and ensure healthy competition in the sector. During discussions as referred above, stakeholders also desired that there is no need to prescribe floor price for retail tariff. In view of the above, the Authority is of the opinion that IUC cannot be taken as floor for the retail tariff. Accordingly, the Authority has decided to remove the requirement of ‘IUC Compliance’ from the reporting requirement. 14. Judgment dated 1st February, 2018 of the Hon’ble TDSAT. While the present process of consultation was going on, the Hon’ble TDSAT pronounced its judgment on 1st February, 2018 in Bharti Airtel Ltd. vs. Telecom Regulatory Authority of India & Anr. (Telecommunication Appeal No.2 of 2017) and other connected matters. The Hon’ble TDSAT upheld the TRAI decision communicated by letters dated 20th October, 2016 and 31st January, 2017 and dismissed the petition of Bharti Airtel Ltd and Idea Ltd. Specifically, in paragraph 32(d) of the judgment, the TDSAT has directed the Authority “to issue suitable direction/order/regulation regarding benchmark/guideline that can be applied for ascertaining consistency with the principles of non-predation”. The TDSAT has also called upon the Authority to, inter alia; issue clear guidelines and benchmarks for performing self- checks by TSPs for ascertaining consistency with the principles of IUC compliance and to work out quick collection and dissemination of relevant data in the context of predatory pricing. With the changes brought about by the present amendments to the TTO, the Authority has laid down the parameters by which TSPs can assess whether they are in accordance with the principle of non- predation. The Hon’ble TDSAT’s specific direction above has affirmed the Authority’s ongoing process of consultation on the issue of determining principles relating to non-predation and the said amendments are in conformity with this direction. Accordingly, it is expected that while reporting tariffs in terms of clause 7 of the TTO, TSPs would conduct self- checks for the purposes of ensuring consistency with IUC Compliance and regulatory principles of transparency, non-discrimination and non-predation, keeping in view all the relevant parameters as would now be applicable after the introduction of the present amendments. So far as IUC Compliance is concerned, the amendments have clarified that its meaning and scope relates to the inter-operator settlement as per the rate(s) prescribed and will not be construed as a floor for retail tariff In any event, the Authority will separately issue self- check guidelines/procedure for the convenience of TSPs on the basis of the parameters already set out in the present amendments. It may be noted that in view of the amended definition of SMP, the relevant market is now based on any of the two parameters i.e. subscriber base and gross revenue. Data collection on the aforementioned two parameters takes place on monthly and quarterly basis respectively which is fairly efficient and expeditious to enable evaluation by the Authority on these two parameters. However, appropriate steps are being taken separately to further expedite the process of data50 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] collection subject to practicality as indicated by the Hon’ble TDSAT vide its judgment and order dated 1st February, 2018. List of Acronyms Sl. No. Acronym Expansion 1 TTO Telecommunication Tariff Order 2 TRAI Telecom Regulatory Authority of India 3 TSPs Telecom Service Providers 4 TCPR Telecom Consumer Protection Regulation 5 TDSAT Telecom Disputes Settlement & Appellate Tribunal 6 USSD Unstructured Supplementary Service Data 7 IUC Interconnection Usage Charges 8 DoT Department of Telecommunication 9 MTNL Mahanagar Telephone Nigam Limited 10 BSNL Bharat Sanchar Nigam Limited 11 CEOs Chief Executive Officers 12 SMS Short Message Service 13 OHD Open House Discussion 14 F&EA Financial and Economic Analysis 15 NIPFP National Institute of Public Finance and Policy 16 CCI Competition Commission of India 17 RCOM Reliance Communications 18 AUSPI Association of Unified Telecom Service Providers of India 19 RJIL Reliance Jio Infocomm Limited 20 MRF MMA Research Foundation 21 NTRA, Egypt National Telecommunications Regulatory Authority, Egypt 22 PoS Point of Sale 23 COAI Cellular Operators Association of India 24 QoS Quality of Service 25 NCHSE National Council of Higher Secondary Education 26 ISAPI Internet Server Application Program Interface 27 ICRIER Indian Council for Research on International Economic Relations 28 ARPU Average Revenue Per User 29 NCAER National Council of Applied Economic Research 30 FMCG Fast Moving Consumer Goods 31 LSA Licensed Service Area 32 SSNIP Small but Significant Non-transitory Increase in Price 33 UL Unified License 34 AGR Average Gross Revenue 35 EU European Union 36 LF Licence Fee¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 51 37 SUC Spectrum Usage Charges 38 OTT Over the Top 39 AAEC Adverse effect on Competition 40 ICN International Competition Network 41 MC Marginal cost 42 AVC Average Variable Cost 43 AAC Average Avoidable Cost 44 ATC Average Total Cost 45 LBJs Legitimate Business Justifications 46 PVs Plan Vouchers 47 CVs Combo Vouchers 48 STVs Special Tariff Vouchers 49 SMP Significant Market Power S. K. MISHRA, Principal Advisor [ADVT.-III/4/Exty./435/2017] Annexure - I List of Comments and Counter comments received on Consultation Paper on “Regulatory Principles of Tariff Assessment” upto extended dates Group of stakeholders Name of Stakeholders No. of Comments received Aircel Bharti Airtel BSNL Idea Cellular MTNL Telecom Service Providers 10 Reliance Comm. RJIL Tata Teleservices Telenor Vodafone AUSPI Associations 2 ISPAI CUTS International Dua Consulting Federation of Consumer and Service Organizations 5 Organizations MMA Research Foundations NCHSE, BHOPAL MyGov MyGov. 5 Aman Mahajan52 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4] Anita Verma Anju Singh Ankit Pratap Singh Apoorva Sharma Ashok Chhibbar Ashwarya Balwant Mehta Individuals Deepa Kapoor (Mr./Ms.) 35 DevenderKanchi Dr. SouvikChatterji Kannan Satheesan M S Kanchi Madhulika Sharma Miti Namrata Sharma Gp. Cap. Rajneesh Bhatia P. Bhatia Priti Rajneesh Raj Bhatia RakshaKumari S. Iyer Sanjiv Kumar Singh Seema Chaudhary Suchita Mahajan Sunil Kumar SurinderKanchi Sushil Kumar T V Ramachandran UdayShenoy Udbhav Aggarwal Vaishali Singh Vibha Singh Vikas Kumar Singh VivekRavani Total 57¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 53 Counter Comments Group of stakeholders Name of Stakeholders No. of Comments received RJIL Telecom Service Provider 2 Bharti Airtel Organization iCT Robot 1 Annexure - II List of comments received after the due dates Group of stakeholders Name of Stakeholders No. of Comments received Individuals Anindya Sen 5 (Mr./Ms.) Debdatta Dr. GeetaGauri S. Sriram V. Sridhar &RohitPrashad Dr. Shekhar Shah (NCAER) 5 ICRIER IIPA Organizations/Institutions NTRA – International Telecom Regulator, Egypt Mr. M. Sekaran, Federation of Consumer and Service Organisations Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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