TRAI Mandates Call and SMS-Only Tariff Plans to Benefit Consumers

The Telecom Regulatory Authority of India (TRAI) has introduced new consumer-centric regulations under the Telecom Consumers Protection (Twelfth Amendment) Regulations, 2024.

These changes aim to make telecom services more affordable and user-friendly, especially for individuals who primarily rely on voice calls and SMS or use secondary SIM cards for limited purposes.

SMS and Call-Only Plans: A Major Relief for Consumers

One of the most notable provisions in these regulations is the requirement for telecom operators to offer dedicated tariff plans focusing solely on SMS and voice calls. This move is expected to greatly benefit an estimated 150 million (15 crores) Indians who still depend on basic mobile services and do not require data connectivity.

Currently, many users are forced to purchase expensive bundled plans that include data services they don’t need. With this new regulation, consumers will have the freedom to pay only for the services they actually use. This change is particularly advantageous for users who maintain a secondary SIM card exclusively for calls or SMS.

Potential Impact on Telecom Operators

The mandate is likely to affect telecom operators' revenue strategies, particularly those of Airtel and Vi, which heavily rely on bundled plans to drive their Average Revenue Per User (ARPU). These plans often include a mix of calling, SMS, data, and even added perks like OTT subscriptions.

However, Reliance Jio, operating exclusively on 4G and 5G networks, may not face significant challenges due to this regulation. The telecom industry might need to rethink its business models to align with these new rules while continuing to attract consumers.

Enhanced Validity for Special Tariff Vouchers

TRAI’s regulations also bring additional benefits through changes in Special Tariff Vouchers (STVs). The validity of these STVs, which are generally more cost-effective than standard plans, has been extended from 90 days to 365 days.

This extended validity allows users to enjoy the benefits of these vouchers for a longer duration, reducing the need for frequent recharges. For budget-conscious consumers, this move ensures better value and convenience.

Smaller Recharge Denominations

In a step to make recharges more accessible, TRAI has also mandated that telecom operators offer top-up vouchers in smaller denominations, starting from as low as Rs 10. This measure caters to users with limited budgets, ensuring that telecom services remain inclusive and affordable.

Consumer-Friendly Approach Backed by Surveys

TRAI’s decisions are the result of extensive consumer surveys and stakeholder feedback. By prioritizing user needs, these changes aim to eliminate the burden of paying for unnecessary services, ensuring that consumers derive maximum value from their telecom plans.

Conclusion

TRAI’s latest amendments underscore its commitment to creating a fair and consumer-friendly telecom ecosystem. From introducing call-and-SMS-only plans to extending the validity of STVs and ensuring affordable recharges, these changes are designed to cater to the diverse needs of Indian users. While these measures may require telecom operators to adapt their strategies, they mark a significant step forward in promoting affordability and accessibility in the telecom sector.

About the Telecom Regulatory Authority of India (TRAI)

The Telecom Regulatory Authority of India (TRAI) is a statutory body established in 1997 under the Telecom Regulatory Authority of India Act, 1997. It serves as the primary regulatory authority for the telecommunications and broadcasting sectors in India. TRAI’s mission is to ensure that the telecom sector grows in a fair, transparent, and consumer-friendly manner while fostering competition and innovation.

Key Functions of TRAI

1. Regulation of Tariffs

   • Ensures affordable telecom services for consumers by regulating tariffs.

   • Strives to balance operator profitability with user affordability.

2. Promoting Competition

   • Encourages competition among telecom operators to improve service quality and innovation.

3. Consumer Protection

   • Develops frameworks to protect consumer rights, including addressing grievances and ensuring service quality standards.

4. Spectrum Management

   • Provides recommendations to the government on spectrum allocation to optimize usage and enhance telecom services.

5. Policy Advisory

   • Advises the government on telecom-related policies, including pricing, market conditions, and technological advancements.

6. Monitoring Service Quality

   • Establishes benchmarks for service quality to ensure telecom operators meet performance standards.

TRAI's Role in India's Telecom Growth

• Digital India Initiative: TRAI has been instrumental in expanding internet penetration and ensuring affordable broadband services, contributing significantly to the Digital India campaign.

• Technology Advancements: It plays a pivotal role in introducing new technologies such as 4G, 5G, and beyond, ensuring India stays at the forefront of global telecom advancements.

• Consumer-Centric Reforms: Initiatives like regulating unsolicited commercial communications, improving portability through MNP (Mobile Number Portability), and ensuring transparent billing practices are key achievements.

Recent Initiatives by TRAI

1. Tariff Reforms

   • Mandated call and SMS-only tariff plans to cater to users who do not require data services.

2. Quality of Service

   • Introduced strict norms for improving call quality and reducing call drops.

3. Encouraging Digital Payments

   • Promoted the use of digital payment platforms for telecom services to enhance convenience.

4. Support for 5G Deployment

   • Provided a framework for the seamless rollout of 5G services in India.

TRAI Vision and Mission

TRAI’s vision is to make India a global leader in telecommunications and broadcasting by ensuring accessible, affordable, and high-quality services for all citizens. Its mission is to create a sustainable environment for investment and innovation while protecting the interests of consumers.