Defining the concept of non-discrimination and non-predation, the Telecom Regulatory Authority of India (Trai) on Friday said it would impose a penalty to the tune of Rs 5 million per circle on any telecom operator found to be involved in offering predatory tariffs.

Trai’s new rules suggest a tariff can be considered predatory if a significant market player (SMP) offers services at a price which is below the average variable cost in a “relevant market” with a view to reducing competition or eliminate competitors. SMP is a service provider holding a share of at ...