The Hindu Business Line : TRAI favours cap on telecom tariff plans

THE Telecom Regulatory Authority of India (TRAI) is considering a limit on the number of tariff plans being offered by basic and cellular service providers in order to minimise the confusion of the consumers.

In its latest consultation paper on the issue, the authority has noted that the competitive activity coupled with flexibility in offering tariffs have led to a situation wherein a large number of plans are offered in the market. "As many as 3,925 tariffs were reported to TRAI by the basic and mobile service providers alone in 2003. At the end of September, a total number of 1,421 plans were on offer all over India suggesting that on an average 42 plans per circle were offered. In addition, another 500 plans were offered as promotional schemes. The figures are likely to go up soon with the entry of additional operators in several circles. These large numbers give rise to issues involving regulatory and consumer concerns," the authority has noted.

The information received by it also reveals that the service providers effect frequent changes to the tariff plans. Total number of revisions in tariff alone reported to TRAI in 2003 was 2,278. There is no guarantee that a consumer will continue to get the service at a certain level of tariffs for a minimum period. Changes in tariffs that are disadvantageous to customers could even upset the basic considerations on which they exercised the choice for that particular tariff plan.

The service providers also resort to frequent withdrawal of tariff plans forcing the customers to migrate to any other plans on offer.

"Another problem that is associated with the profligacy of tariff plans comes in the nature of promotional plans/offers. In 2003, the operators offered approximately 500 promotional plans/offers. The incentives offered under promotional offers emanated from within the licensed service to products outside telecom service. Though promotional offers are intended to be applicable for a limited time, service providers have been offering such schemes for unlimited period diluting its promotional character and in fact making it a regular tariff plan," the TRAI said.

Frequent revision and withdrawal of tariff plans further add to the confusion of the consumers. The consultation paper contains facts and figures related to the large number of tariff plans in the market and issues related to it. The authority has sought written comments/suggestions from all stakeholders including service providers and consumers on this consultation paper latest by March 27.

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TRAI favours cap on telecom tariff plans