Indian Broadband Policy and Regulatory Resources

Tariff Regulation

Tariff regulation received scores at 2.6, which is still below the average of 3.0. Respondents complained about the lack of clear tariff regulation and the arbitrary tariff ceilings established by NTC. So far, NTC has taken a hands‐off approach in tariff regulation and has allowed prices to be determined by competition in the market. Although it recently established ceiling prices for several services, most are non‐binding, with the exception of local fixed line services.

Although the NTC’s relatively “hands off” attitude towards price regulation has nurtured fierce price competition in the market, it displays clear inability to set telecom tariffs even in areas where it needs to, due to a lack of data and information. At the same time, its decision to forebear regulation when such regulation is clearly in need raises doubts about the regulator’s competence.