Financial Daily from THE HINDU group of publications
Saturday, Sep 17, 2005
Financial Daily from THE HINDU group of publications Saturday, Sep 17, 2005 |
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Regulatory Bodies & Rulings Info-Tech - Telecommunications Marketing - Promotions & Offers TRAI `no' to misleading tariff plans — `Operators must come clean on zero rentals' Our Bureau
New Delhi , Sept. 16 THE Telecom Regulatory Authority of India (TRAI) on Friday disallowed tariff plans with misleading titles such as `zero rentals' on the ground that operators were continuing to charge recurring hidden monthly fee. TRAI directed telecom operators to show all monthly fixed recurring charges under one head for the purpose of transparency to the subscribers. "The direction comes in the context of the fact that tariff plans with misleading titles like `zero rental' have mushroomed in the market. The Authority has observed that such plans do have monthly fixed charges in one form or other. This may be monthly rental, plan fee, club membership fee or any other monthly fixed charge. The Authority is of the view that titles of tariff plans, which have the potential to mislead the subscribers will be considered as lacking in transparency and the service providers should be prohibited from offering such plans," TRAI said in a statement. Most of the cellular operators are offering zero rental plans but charge monthly fee either for offering caller line identification or as fee for value added services. Hutch said that they would comply with the TRAI directive. The Idea Cellular spokesperson said: "We have neither advertised nor communicated through mass media the zero rental plan, but because of competition pressures we are offering the same if customers want. As a policy, all our advertising is explicit and transparent in terms of consumer requirement. This is one of our USPs." TRAI said wherever the title of a tariff plan suggests absence of monthly fixed charges, it is essential from transparency point of view that such plans do not carry any mandatory fixed charge not linked to usage, in any form whatsoever. Similarly, plans - the titles of which suggest unlimited usage - will be treated as misleading in situations where the features of the plan put restriction in any manner on the usage. Operators have been asked to comply with the order within 15 days.
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