VIL falls after TDSAT reserves order to hold its premium plans.





Vodafone Idea falls 17% after TDSAT reserves order to hold its premium plans.


Mumbai: Shares of Vodafone Idea fell as much as 17.11% after the Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) on Thursday reserved its order to stay the sector regulator's decision asking the telecom firm to put on hold its RedX premium plan.

At 02:20 pm, Vodafone Idea was at 7.59, down 12.25% from its previous close, while the benchmark index, Sensex gained 0.52% to 36239.98.

Mint reported that Telecom Regulatory Authority of India's (Trai) order barring both Vodafone Idea and Bharti Airtel from offering differentiated products in 4G postpaid plans was passed following a complaint filed by Jio on 8 July.

Jio alleged that Vodafone Idea’s RedX plan was discriminatory and misleading. Trai put on hold Airtel and Vodafone Idea’s premium plans citing violation of service norms and the possibility of lower data speeds for those who have not opted for such schemes. Vodafone Idea had moved the tribunal on Monday challenging the order.

The TDSAT had on Tuesday refused to stay Trai’s order, denying interim relief to Vodafone Idea.

Vodafone Idea reported a consolidated net loss of 11643.50 crore for the quarter ended 31 March against 4881.90 crore for the same quarter last year.

Since the beginning of the year, Vodafone Idea gained 27% against a drop of 12% in the benchmark index, Sensex. In the last one month, Vodafone Idea gained 20% while Sensex was up 8%.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Thursday reserved the order to stay the sector regulator's decision asking Vodafone Idea Ltd to put on hold its RedX premium plan for higher-paying postpaid customers. The outcome of the matter is likely in a day or two.

This will also impact Bharti Airtel’s Platinum plan, launched last week for postpaid users, that was also put on hold by the Telecom Regulatory Authority of India (Trai) on 11 July along with its rival Vodafone Idea’s RedX plan.

The tribunal on Tuesday had refused to stay a Trai order stopping Vodafone Idea’s RedX plan that offers faster data speeds and priority services to some postpaid users. Vodafone Idea had approached the appellate tribunal on Monday seeking interim relief.

On the same day, Mukesh Ambani’s Reliance Jio Infocomm Ltd asked TDSAT to be made a party in the case. Mint had reported that Jio’s application to the appellate tribunal contended that it will be impacted by the outcome of the case and hence wants to be impleaded in the proceedings.

Though the tribunal heard Jio’s arguments today, it is yet to admit the company's application, a person of the matter said on condition of anonymity. “The court will give its decision on whether Jio's intervention should be allowed or not," the person said.

It had emerged the Trai’s order barring both Vodafone Idea and Bharti Airtel from offering differentiated products in 4G postpaid plans was passed following a complaint filed by Jio on 8 July. Jio alleged that Vodafone Idea’s RedX plan was discriminatory and misleading.

In its complaint to Trai, Jio said the tariff plan would cause deterioration of the quality of service for one class of customers by providing priority to others and was premised on false and misleading claims being made to customers.

On Saturday, Trai put on hold Airtel and Vodafone Idea’s premium plans citing violation of service norms and the possibility of lower data speeds for those who have not opted for such schemes.

“These companies (Airtel and Vodafone Idea) had themselves submitted earlier that they cannot specify minimum or average speeds provided to customers and now they want to offer higher speeds to select customers. We just want to examine the details of the plans," a senior Trai official said on condition of anonymity.

Trai said Airtel and Vodafone Idea’s premium plans violated service norms and could lower data speeds for those who have not opted for such schemes.

Bharti on 6 July had announced faster 4G data speeds for all its platinum customers - postpaid users paying 499 or above. The Sunil Mittal-led telecom major had said it has deployed advanced technologies for its ‘Priority 4G Network’ that will give its platinum subscribers preference on the network.

Vodafone Idea had introduced its RedX plan in November for postpaid customers with a launch price of 999, offering up to 50% faster speeds and special services. The price of the plan was hiked by 100 in May.

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