The Hindu Business Line : Dialling TRAI with a wish-list

The Web site of the Telecom Regulatory Authority of India opens with the Father of the Nation speaking into a phone with the caption, "Truth Alone Triumphs". TRAI's mission is "to create and nurture conditions for the growth of telecommunications including broadcasting and cable services in the country in a manner and at a pace that will enable India play a leading role in the emerging global information society."

In terms of the Telecom Regulatory Authority of India (Amendment) Ordinance 2000, TRAI is vested with the authority of making recommendations on matters such as the need and timing for the introduction of a new service provider; terms and conditions of licence; measures to facilitate intra-sector competition and promote efficiency; and the type of equipment to be used by the service providers.

TRAI's functions include, having regard to the various service providers, fixing the terms and conditions of inter-connectivity; ensuring technical compatibility and effective inter-connection; regulating revenue-sharing arrangements; and laying down service quality norms and periodic monitoring of service quality.

Between January 2004 and March 2007, TRAI issued as many as 36 regulations and 29 tariff orders. For instance, in a letter dated May 23, 2006, addressed to the service providers, TRAI dealt in detail with the subject of transparency of tariff offers and disclosures to customers.

The three-page letter, along with a four-page annexure, is testimony to the fact that TRAI has, at the heart of its regulatory operations, not only concern for the growth of telecom industry but also customer satisfaction.

Work well done

TRAI has introduced several consumer-friendly measures. They include the following: service providers should inform the customer within a week of activation of service about the complete tariff plan and subsequent changes if any; there should be no increase in tariff on any item within six months of enrolment in a tariff plan; customer is free to move from one tariff plan to another without incurring further costs; pre-paid customers should get services such as incoming calls and SMS, which do not affect "talk time value" even after the value is exhausted as long as the validity period is current; pre-paid customer's unused balance is to be carried forward if recharged during the grace period; fixed-line and broadband customers are to be given rental rebate for faults pending beyond three days; security deposits are to be refunded after adjustment of dues within 60 days, failing which, interest has to be paid at 10 per cent per annum for the delay; pre-paid customers can be charged for roaming, only if they make or receive a call while roaming; and service providers must institute mechanisms for attending to customer complaints.

Thanks to TRAI and the infusion of competition, while the fixed-line subscriber base has stagnated, if not declined, the wireless segment grew rapidly in less than five years. Thus, as against the 40 million fixed-line subscribers at the end of September 2006, the wireless subscribers numbered a staggering 130 million, up from just 13 million at the end of March 2003. TRAI has not lagged in performance monitoring, which includes evaluation of customer satisfaction on various dimensions such as connectivity, billing efficiency, timely refunds, and, above all, overall satisfaction. In the performance monitoring exercise carried out in March 2006, for instance, 35,046 cellular mobile service subscribers were surveyed.

Though the benchmark for overall satisfaction was set at higher than 95 per cent, the overall rating across regions and service providers was not less than 80 per cent with the following exceptions: BSNL in UP East (77 per cent), Reliance and BSNL in West Bengal (71 per cent) and Bharti and BSNL in the North-East (78 per cent). The TRAI monitoring reports would go a long way in improving performance.

Economists define development as widening of choices. This is a convenient definition and helps to underline the importance of innovation to bring out new products.

Yet, the consumers will not necessarily benefit from useless and cumbersome choices even if they appear new, innovative and interesting. When it comes to mobile phones, the combinations offered by different service providers are mind-boggling. An analysis of all the options, special offers, freebees, etc., can be an illuminating study of choices.

TRAI, in its latest (44th as of January 24, 2007) tariff order, prescribed three ceiling rates: Rs 1.75 per minute for an incoming call while regional or national roaming; Rs 1.40 per minute for an outgoing local call while regional or national roaming; and Rs 2.40 per minute for outgoing long-distance (inter-circle) call while regional or national roaming.

What consumers may want

Here is a wish pack most consumers will be happy with. There should be uniform rates instead of uniform ceilings. Then, all service providers should sell just three packs, with a moderately regressive `talk time to price' ratio: Rs 100 at the low end, Rs 500 in the middle and Rs 1000 at the top.

Indefinite validity, zero variation between pre- and post-paid, easy conversion from pre- to post-paid, and separating `purchase of phone' and call charges are also part of the wish pack.

The only decision a customer has to make is choosing one of the three packs, depending on how much he can afford, without counting any losses and gains — real or imagined.

Another aspect should be integral to the pack. Just as Internet service providers and mail servers have successfully introduced spam and junk mail blocking, cell phone users too must be spared the agony of receiving unwanted calls and messages from advertisers and sales persons.

TRAI and the service providers must make note of the need to save the precious time of the customers. Even if 15 minutes are spent by each subscriber on an average, the 130 million subscribers would have spent 35 million man-hours a day.

(The author, formerly with the National University of Singapore and the World Bank, is Professor Emeritus, GITAM Institute of Foreign Trade, Visakhapatnam and Visiting Faculty, Sri Sathya Sai University, Prashanti Nilayam. He can be reached at bhanoji@gmail.com.)

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