In an effort to protect the interests of consumers, the Telecom Regulatory Authority of India (TRAI) has announced several initiatives, including waiving processing charges on recharge cards for prepaid users, ensuring lifetime validity even on changing service providers and fee waivers for migrating from prepaid to post-paid connections. TRAI has also mandated that all telecom companies provide key tariff information in regional languages in addition to English and Hindi.

TRAI’s recent tariff order aims to improve transparency in the tariff packages offered by service providers. It will be applicable to both new and existing users from mid-September.

After complaints on tariff transparency issues were received from various user groups, TRAI decided to re-examine the regulatory framework relating to tariff transparency through the process of public consultation. It released a consultation paper titled Issues Arising Out of Plethora of Tariff Offers in Access Service Provision. Based roughly on the feedback received from various stakeholders, including the Cellular Operators Association of India and the Association of Unified Telecom Service Providers of India, the regulator has now submitted amendments to the tariff order.

Broad outlines

  • Subscribers will get full talktime on recharges, barring an administrative fee, which shall not exceed Rs 2 per recharge and applicable taxes.
  • Subscribers will automatically get the benefit of straight tariff reductions without any preconditions of explicit action on the part of the subscriber, for example, sending an SMS.
  • Customers in existing lifetime plans can migrate to new lifetime plans with lower entry fees without having to make additional payment or recharges.
  • Lifetime customers need not recharge more than once in six months for remaining connected.
  • Customers will get key tariff information in vernacular languages as well, at all retail outlets of the service providers and their franchisees.
  • The subscriber’s mobile number will not change when the subscriber changes tariff plans or moves from prepaid to postpaid or vice versa.
  • Blackout days (days on which free/concessional calls/SMS are not available will be limited to a maximum of five days in a calendar year. Such days will be pre-specified, and no subsequent alteration or addition will be permitted.
  • Promotional offers will be streamlined. For this, the period of the promotional offer should be declared, that is, the beginning and end dates of the offer and the eligibility criteria for the offer should be clearly defined.

    • The above amendments indicate that prepaid mobile subscribers, who account for over 92 per cent of India’s telecom users, will be the biggest beneficiaries of this move, as they can now enjoy full talktime on all recharges.

    Full talktime on top-ups, however, could have financial implications for mobile operators because prepaid users account for almost 70 per cent of their revenues. Explaining the rationale for the decision, TRAI has stated that a levy of a second or subsequent processing fee when the customer buys talktime through exclusive talktime top-ups is unjustified, when a subscriber has validity left.

    Whatever the issues, most operators have stated that they are already complying with most of the new norms and that they are in the process of incorporating the remaining amendments. For instance, Bharti Airtel has already reduced the processing fee on all top-ups for its mobile subscribers. Other operators are likely to follow suit soon.

    All in all, the tariff order will pave the way for future expansion of mobile telephony services in the country.