Trai for cap on mobile tariff plans

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Trai for cap on mobile tariff plans

Source: The Statesman, March 08, 2004

NEW DELHI, March. 8. —In a bid to cap the long list of confusing tariff plans, the Telecom Regulatory Authority of India (Trai) today came out with a consultation paper to limit the number of tariff plans for cellular as well as fixed line operators.

The consultation paper would cover almost all the issues to limit the tariff plans including the number of plans to be permitted, the identification of service segments for the application of the proposed cap, and desirability of having minimum validity period of tariff plans. Trai, which has so far amended its Telecom Tariff Order (TTO) 30 times, would also look into the criteria in respect of tariff topping and promotional offers.

“Frequent revision and withdrawal of tariff plans add to the confusion of customers. A possible way of addressing the problems without curtailing the flexibility granted to the operators or hampering the competition could be to place a suitable cap on the number of tariff plans that the service providers can offer,” the regulator observed in its consultation paper issued today.

Trai further said that while a variety of choices for users would be a welcome development, too many plans confuse the customers and render informed choice very difficult.

Explaining the nuisance of the tariff plants, Trai said in 2003 it received 3,925 tariff plans, out of which 1,421 were offered to subscribers. This means, telecom operators offered over 40 plans per circle in 2003. In addition to this, the operators also offered 500 promotional plans to its subscribers, the Trai.

Edited March 11, 2004 by Ashokjp