Trai to rework rate plans

Releases consultation paper

The Telecom Regulatory Authority of India (Trai) on Thursday released a consultation paper on telecom rates, with an aim to bring more transparency in those offered by telecom operators. The paper will look into the various plans offered that confuse consumers, misleading advertisements and rates of premium calls and messages.

In view of the increased competition and telecom penetration in rural areas, there is need for a more transparent regime for rate offerings, the regulator said in the paper, seeking stakeholders’ comments by November 15.

Trai’s initiative assumes significance in the wake of a rising number of promotional offers and increasing competition in the telecom market. It has also received representations from consumers against the multiplicity of plans in the market, which has been leading to confusion among consumers.

While forbearance of rates had a positive impact on growth in subscriber base and reduction of call charges, subscribers were concerned about multiplicity of plans, complexity, and non-transparency of offers, Trai said.

The move coincides with the government’s plan to merge all 22 telecom circles (states) into one or a few in order to cut on roaming charges. The Department of Telecommunications is likely to consider the proposal soon.

According to some operators, there is scope for reduction in termination charges (a charge paid by an operator on whose network a call ends to the one from whose network the call originates). If this happens, call charges are likely to further decline from current levels.

The rate plans offered by service providers have different components of rent and call charges, processing fee, talk time and value-added services. Adequate price transparency is crucial for the correct operation of an efficient and competitive market.