Trai has issued a show cause notice to Vodafone Idea for its premium plan which it feels is misleading and not in compliance with regulatory principles.

The regulator has asked Vodafone Idea to “show cause” by August 31, “as to why appropriate action should not be initiated against it for violating the extant regulatory framework for its RedX tariff plan”.

In the notice sent to Voda Idea, Trai said it is of the view that the “claim of the company in providing priority 4G network with faster data speeds is not in compliance with the extant regulatory framework”.

“The RedX tariff offer lacks transparency and is misleading and not in compliance with regulatory principles of tariff assessment contained under the Telecom Tariff Order, 1999, as amended from time to time,” Trai has said in the show-cause notice.

Sources in Vodafone confirmed receipt of the notice. However, sources in Bharti Airtel said they have not received any such notice yet. Airtel also has a similar Platinum plan for post-paid users.

CCI clears Airtel deal

The Competition Commission of India (CCI) on Wednesday said it has approved the acquisition of compulsorily convertible preference shares and equity shares in Airtel’s data centre business, Nxtra Data, by Carlyle Group's Comfort Investments II.

The Carlyle Group in July said it will acquire about 25 per cent stake in Nxtra Data Ltd for $235 million (about Rs 1,780 crore). This will peg the enterprise valuation of Nxtra Data at $1.2 billion, which is over Rs 9,084 crore.

On completion of the deal, Carlyle will hold about a 25 per cent stake in the business, with Airtel continuing to hold the remaining 75 per cent.