TRAI considers one tariff plan for phone operators

As the number of tariff plans hits the roof, the Telecom Regulatory Authority of India (TRAI) is likely to bring about new measures to make things simpler for the phone subscribers.

One of the steps under consideration is ‘one tariff plan for all’, at least for the pre-paid mobile subscribers, for greater transparency.

A consultation paper, issued by TRAI, talks of the single-tariff plan among many other measures that could be implemented, to regulate the telecom sector better.

Industry representatives have to send their comments to TRAI by November 15, based on which Trai may mandate fresh regulatory measures on tariff.

Even as telcos are barred from offering more than 25 tariff plans each in any service area, the total number of schemes offered by multiple service providers in any circle often  results in confusion for consumers.

In the GSM (global systems for mobile communications) segment itself, the number of tariff plans on offer in Mumbai by all telcos put together is as many as 134.

In Maharashtra (excluding Mumbai), 85 GSM tariff plans are being provided.

The number is 114 in Delhi, 81 in Kolkata and 26 in Chennai.
If we combine the GSM, CDMA (code division multiple access) and landline tariff schemes, Mumbaikars have 292 to choose from and Delhiites 276.

In Kolkata, 203 tariff plans are on offer while that in Chennai is 61. Across India, the total number of tariff plans (mobile and landline taken together) is 5,074.

Highlighting the need for greater regulation, TRAI has said in its consultation paper that while forbearance of tariff has positive impact on subscriber growth and reduction of call charges, “subscribers are concerned about multiplicity of tariff plans, complexity, and non-transparency of tariff offers.”    

It has added that “the mobile growth increasingly covers a large number of persons from rural areas and also low income groups in its fold.”

Therefore, the need for transparency and ease to clearly understand the tariff plans is being increasingly articulated, the regulator has stressed.

Regulatory intervention may therefore be appropriate to address the issue of deficient consumer information in its various forms including lack of information, unclear or hard to find information, misleading information or the “bounded rationality” of consumer decision-making”, TRAI said.

While mentioning the high growth and falling tariffs in the telecom sector, TRAI has asked pertinent questions on the ways of making tariffs simpler and easy to understand.

Among the questions that industry stakeholders and consumer groups have to answer on the issue are: Is mandating `one standard plan for all service providers’, particularly for the prepaid subscribers, the right step? Are large number of tariff plans beneficial for the subscribers?

Is it necessary to revise or reduce the existing cap of 25 on the number of tariff plans on offer, and what will be the appropriate number? Should there be any limit on the rates of premium SMS and calls? What steps must TRAI take to prevent misleading tariff advertisements?

Taking credit for high growth in subscriber number, TRAI has said mobile connections have risen to 670 million as of end of August 2010 from just 1.2 million in March 1999. And, a one minute call between Delhi and Mumbai that cost Rs37.50 in 1999, can be currently made at around 60 paise.

Similarly, the tariff for a call to American continent from India has come down from Rs75 per minute to Rs6.67 per minute in the same period, TRAI has said.