New Delhi, Mar 31 (IANS): The telecom regulator said on Thursday that the Telecom Commission's contention that reduced tariffs by telecom service providers (TSP) is leading to reduced revenues for the government and poor health of the sector may be inconsistent with the principles of public policy.

In response to a letter by the panel, the Telecom Regulatory Authority of India (TRAI) said the economic purpose of telecom regulation is aimed to maximize the overall economic growth of the sector and increase productivity.

While addressing the Telecom Commission's concern that there is a declining trend in the collection of revenue solely due to the tariff war triggered by promotional offers by service providers, TRAI said: "The Authority would like to inform you that he tariff regulatory regime established by TRAI since 1999 has promoted competition in the sector and has facilitated all TSPs including new entrants in the sector to offer competitive tariff to their consumers."