NEW DELHI: Trai Tuesday deferred the implementation of the zero-interconnect usage charges (IUC) regime by a year till January 1, 2021, and separately sought stakeholder views on whether it should set a floor and ceiling for voice and data tariffs, even as it termed the proposal ‘anti-consumer’.The decision to postpone the zero-IUC regime will offer some relief to Vodafone Idea and Bharti Airtel , which can now keep getting some revenue on this account, said analysts.ET was the first to report about the deferment on its online platforms earlier Tuesday.The consultation paper on tariff issues came after all three private telcos — Bharti Airtel, Vodafone Idea and Reliance Jio — wrote to Trai via industry body COAI, asking it to set a floor for data services to improve the health of the sector.In its paper on tariffs, the Telecom Regulatory Authority of India (Trai) — which has been not been keen to interfere in pricing issues — criticised the telcos for their demand, saying it is “prima facie anti-consumer, as it will result in increase in tariffs for the consumer”.It added that economists have consistently and successfully demonstrated the distortions in the market, especially in pricing, that could result from government or regulatory interventions.“It (intervention in pricing) is generally avoided by regulators in the developed countries, as it is considered anticompetitive and anti-consumer by the economists. It is generally accepted that this intervention reduces the freedom and ingenuity of the service providers to offer consumer-friendly tariff offerings,” Trai said.The regulator also appeared to call out Jio, without naming the company. Trai said that while one COAI member in its comments on the IUC paper had argued that the zero-IUC regime should not be postponed as it would lead to an increase in prices, it had also sought a floor for tariffs.“Thus, there seems to be a contradiction in the two different stands espoused by some of the members of COAI,” Trai said.Jio had opposed any deferment in the implementation of the zero-IUC regime.“For wireless to wireless domestic calls, termination charge would continue to remain 6 paise per minute up to December 31, 2020… from January 1, 2021, onwards the termination charge for wireless to wireless domestic calls shall be zero,” Trai said in a release Tuesday.At present, interconnect charge is paid by the call-originating telco to the destination carrier. But under the proposed BAK (bill and keep) system, which was set to take effect from January 2020, the call-originating telco — which also bills the user — would keep the money, thus making it a zero-IUC regime.“It may not be advisable to implement BAK from January 1, 2020, keeping in view inadequate adoption of 4G technology by consumers and asymmetries in traffic,” Trai said. It added that sticking to the original BAK deadline “may affect level playing field amongst service providers, and in turn, effective competition in the market”.Further, it said, in a capital-intensive sector with a long gestation period, and where entry of new service providers in the short run is difficult, maintaining effective competition amongst service providers is necessary for ensuring affordable services to consumers.Trai’s decision is a relief for Vodafone Idea and Bharti Airtel, which had sought deferment of the BAK (or zero-IUC) regime, since they are net interconnect revenue earners. Jio, which is a net payer, had opposed any deferral.The Trai regulation “provides the most short-term relief to Vodafone Idea while Jio would see a temporary adverse impact. In 2QFY20, IUC Ebitda accounted for 28%/3% of Vodafone Idea’s/Bharti’s consolidated Ebitda. On the other hand, net IUC costs were 13% of Jio’s Ebitda,” brokerage IIFL said in a note.But it noted that these numbers were declining as the minutes mix of the telcos has been changing, and Jio seems set to become a net IUC earner in the next three-four quarters.Trai added that if the traffic asymmetries become negligible during 2020, as indicated by one telco (read: Jio), then this deferment in date of implementation of BAK may not have any meaningful impact on any service provider as the net IUC charges would become insignificant.COAI director general Rajan Mathews welcomed Trai’s decision. “Industry would have liked it to be extended by another year, but even one year helps,” he said.“We hope by the end of the year, Trai will once again review the matter. Second, two court cases are ongoing on this matter and we hope to hear some decisions regarding methodology of computing this charge,” Mathews told ET.He also lauded Trai’s other major move on Tuesday to issue a paper on regulating tariffs, saying a floor will help in tariff correction, which was necessary for improving the financial health of the industry, orderly competition as well as to attract investments.“The only option available is for the regulator to intervene and correct the anomalous pricing situation prevailing in the market place,” said Mathews. He added that such regulation will also ensure that resources are available with telcos to improve quality of services and for expansion of networks.In the paper, Trai sought to know by January 17 if there was at all a need for setting a floor for tariffs, especially in the backdrop of telcos having raised rates in the first week of December, and the methodology to be adopted for this.It questioned the telcos’ view that only data should be regulated and not voice. “…regulating the data tariff in turn regulates the voice tariff, at least on a 4G network. As such, it does not seem logical, on part of COAI, to request the Authority (Trai) to regulate data tariffs by prescribing floor price while keeping voice services under forbearance… This would create a disparity between the service providers providing the same service,” Trai said. Jio is the only operator running a pure-4G network while the other two offer both 2G and 3G services.Trai also wanted to know if it should set a ceiling on tariffs to protect consumers.It pointed to media reports about floor price fixation by the regulator and unhealthy competition if such interventions are not done.“The debate in the media overwhelmingly reflects the viewpoints of industry players and reports of investment bankers… The media debate does not reflect the views of all stakeholders, particularly consumers, adequately,” Trai said.A lopsided deliberation will only result in confusion, uncertainty and may not be beneficial for the smooth growth of the telecom sector.“Accordingly, the authority has decided to float a consultation paper on the issue so that all the stakeholders can get an opportunity to fully participate in the deliberations and give their views on such crucial issues,” the regulator said.Rajiv Sharma, research head at SBICap Securities, said introduction of a floor for voice tariffs will be a huge positive for the sector as it will bring about greater predictability to telco revenue streams and business models, which in turn will help attract investments.“Floor pricing, if introduced, can go a long way in reviving the fortunes of India’s telecom industry, which has borne the brunt of fierce competition and dirt-cheap tariffs for a prolonged period. However, figuring out an accurate floor price will be tricky, given that most tariffs are bundled offers,” he said.