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2) Critically examine the impact of TDSAT’s order on predatory pricing? Also explain the function of TDSAT?(250 words)

Topic – Statutory, regulatory and various quasi-judicial bodies

2) Critically examine the impact of TDSAT’s order on predatory pricing? Also explain the function of TDSAT?(250 words)

Economictimes

Why this question

This article discusses the recent judgmental of TDSAT where it rejected the telecom regulator’s order that had changed the definition of ‘significant market power’ (SMP) to identify predatory pricing. This order has significant impact on the telecom sector of the country and thus needs to be understood and its impact analyzed.

Key demand of the question

The question first expects you to first explain the role of TDSAT. Thereafter, we need to explain the order and by referring TRAI regulations. We need to discuss the pros and cons of the impact of the order. Finally, we need to provide a fair and balanced conclusion and discuss the way forward.

Directive word

Critically examine – When you are asked to examine, you have to probe deeper into the topic,  get into details, and find out the causes or implications if any . When ‘critically’ is suffixed or prefixed to a directive, all you need to do is look at the good and bad of something and give a fair judgement.

Structure of the answer

Introduction – Discuss why this question has come by explaining TDSAT’s order.

Body

  • First answer the second part of the question regarding role and function or TDSAT.
    • In order to bring in functional clarity and strengthen the regulatory framework and the disputes settlement mechanism in the telecommunication sector, the TRAI Act of 1997 was amended in the year 2000 and TDSAT was set up to adjudicate disputes and dispose of appeals with a view to protect the interests of service providers and consumers of the telecom sector.
    • The Tribunal exercises jurisdiction over Telecom, Broadcasting, IT and Airport tariff matters under the TRAI Act, 1997 (as amended), the Information Technology Act, 2008 and the Airport Economic Regulatory Authority of India Act, 2008
  • Explain what predatory pricing is. Explain how by altering the definition of significant market player, the order has has a huge impact on reliance Jio, Airtel , Vodafone etc.
  • Analyze the impact of the order on enhancing the reach of cell phones and telecom connectivity in the country versus the upholding of principles of transparency and effectiveness

Conclusion – Give your view on the verdict and discuss about the way forward.

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