Trai mandates wider choice of voice-and-SMS-only plans for consumers

The Telecom Regulatory Authority of India (Trai) on Tuesday directed service providers to offer voice-and-SMS-only tariff plans, without bundled data, with minimum validity of 30 days or less, giving consumers who don’t need data more affordable, shorter-duration options.

 

The regulator said amendments to the Telecom Consumer Protection Regulations, 2024, follow consultations that found limited availability of voice-and-SMS-only special tariff vouchers (STVs), with operators offering longer-validity plans that restricted affordable options for low-income consumers. “The Authority is of the view that such a tariff framework would sufficiently address consumer requirements,” Trai said in the notification adding this will give low-income consumers more choice to recharge based on their needs and financial capacity.

 

 

The mandate may expand consumer choice but could put some pressure on average revenue per user (Arpu), particularly among low-data users, say sector experts. Voice-only plans may make it harder for operators to raise spending among light-data customers, increasing the importance of differentiating plans via data allowances, speed, network quality and service.

 

As prepaid constitutes about 90 per cent of connections, recharge frequency mat­ters as much as the value, said Rohan Lobo, partner & TMT industry leader, Deloitte South Asia.

 

“Nearly 90 per cent of connections are prepaid, so what matters commercially is not just the value of each recharge, but how regularly customers recharge,” Lobo said.

 

Some users could shift to cheaper voice-only plans, pressuring Arpu, while the plans could also keep price-sensitive customers and secondary SIMs active, he said, adding, “The net revenue effect will depend on whether improved recharge continuity can compensate for lower spend among customers who down trade, but I expect a marginal drop in Arpu nevertheless.”

 

Data consumption per subscriber rose about 20 per cent year-on-year, while data revenue per user remained around ₹200 a month, according to Deloitte. Realisation per gigabyte fell to ₹7.51 in March 2026 from ₹9.11 a year earlier, indicating that higher consumption has not translated proportionately into data monetisation.

 

“Trai’s mandate could lead to some Arpu dilution though not much, especially from low data users, elderly and users with second SIMs,” said Vinish Bawa, leader of the telecom practice at PwC India. Operators will have less flexibility to bundle data into prepaid plans to drive higher recharge values, he said, although the overall revenue impact should be limited because heavy smartphone users are likely to continue buying data plans.

 

The plans could also help operators retain low-usage subscribers who might otherwise stop recharging a secondary SIM, Bawa said.

 

He also flagged a broader regulatory concern, saying the mandate moves further into tariff design, an area currently subject to forbearance. “More important is that this increases regulatory control over tariffs and their design which is the bigger concern for operators,” he said.

 

Lobo said the measure also has implications for network economics. If a customer was already using little or none of the data included in a bundled plan, shifting to a voice-only offering would reduce revenue without a commensurate reduction in network costs.

 

That would make future Arpu growth less dependent on higher data consumption and more reliant on tariff increases, customer upgrades, roaming, postpaid services, premium data products and adjacent offerings, Lobo said. Operators would also need to continue cutting costs, including through AI-led automation and increasingly agentic operating models, he added. 

Impact assessment 

• Estimated 200 million users not using data   
• Lower end customers may move to voice-only plans 
• Arpu impact likely, Second SIMs activity may rise 
• Data monetisation may become tougher 
• Move may delve into forbearance