Allegations relating to predatory pricing have returned to the telecom sector after a gap of seven years, with Bharti Airtel levelling such charges against Reliance Jio on its recent bundled broadband plan offering live TV channels. While Jio has countered the claim, pure-play DTH operator Tata Play has accused both telecom operators of predatory pricing in their broadband plans offering live TV channels.

All three companies have made submissions to Telecom Regulatory Authority of India (Trai), which is examining the matter.

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The core of the dispute is convergence between telecom and broadcasting services, which is not directly addressed by existing regulations. While there are tariff regulations for both telecom and broadcasting services, they do not tackle what happens if broadcasting services are offered by telecom players through their apps or data connectivity plans.

The matter started with Airtel writing to Trai, complaining that Jio’s fibre backup plan at `198-`1,499 bundled with live TV channels and broadband is not only predatory, but also disturbs the level playing field for DTH players. Currently, Airtel under its Airtel Black plan offers broadband, DTH, and OTT apps starting at Rs 699 a month.

On the other hand, Jio provides 10 Mbps fibre broadband plans starting Rs 198. The OTT apps and live TV channels are part of add-on packs of `100 or `200 per month provided by Jio.

“We strongly feel that by offering 400/550 channels as part of the broadband offering well below the market cost with a view to reduce the competition is a clear case of predatory pricing,” Airtel said in its letter to Trai.

While Airtel’s tariffs for converged services are at a premium to Jio, Tata Play in its letter to Trai said Airtel included live TV channels in its offerings following Jio. After that, Jio made its offerings more lucrative by offering 400 and 550 live channels at a lower price.

“The move of predatory pricing by the telecom and broadband operators is damaging and detrimental to the business of DTH, which is already saddled with multiple regulatory restrictions and is unable to negotiate with broadcasters and give such lucrative discounts to its subscribers,” Tata Play said in its letter to Trai.

“We have subsidised consumer premise equipment (like set top boxes) worth thousand of crores lying in consumer homes whose subsidy is yet to be recovered. Our customers are unlikely to recharge their accounts at the prevailing prices if offers like these are available to them telecom and broadband operators,” Tata Play added.

Countering the accusations, Jio in its letter to Trai said the alleged loss to DTH players and claims of predation are neither substantiated nor explained and therefore should be summarily dismissed.

“A close reading of the complaint letter would clearly establish that Airtel’s sole grouse is that JioFiber is offering reasonable tariffs to customers,” Jio said in a letter to Trai. The company said it does not include OTT or broadcasting services subscription in its fibre plan but the same are only given as add-on plans.

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“We submit that JioFiber backup tariff is an earnest attempt by RJIL to connect all

consumers to fiber optics technology in order to deliver best in class connectivity services… RJIL’s product offering is limited to connectivity services and it does not include subscription to OTT applications or any broadcasting services,” Jio said, adding that Trai should sideline the complaints as the company is not in violation of any regulations.

Further, Jio has argued that all the broadcasters are providing access to their live channels on their OTT apps through internet, and the same services offered by Jio are in line with market practices.

Meanwhile, Tata Play has said that Trai should either put an end to the predatory prices by both the telecom operators or should provide DTH operators the power to negotiate prices with broadcasters.