Telecom operators free to set tariffs

No bar on receiving calls and SMS in pre-paid validity period

Telecom Regulatory Authority of India (Trai) allowed all telecom service providers to announce tariffs without taking prior approval from the regulator.

Trai has asked operators to do a self check on tariffs so that they are non-predatory, competitive and compliant with the interconnect norms.

The operators will, however, have to file their tariffs with Trai within seven days of implementing them. Until now, tariff forbearance was only for cellular and fixed-line operators. Other operators had to seek the approval of Trai 5 days before launching any new tariff plan.

"The authority is of the view that the current declining tariff environment is an ideal time to switch over from an ex-ante tariff regulation to ex-post tariff regulation."

Trai has also asked cellular operators to allow pre-paid mobile users to receive calls and short messages even if the pre-paid card does not have any talk time. This comes after the Trai had received number of complaints from subscribers that incoming calls and SMS facility was stopped within the validity period once the talk time is exhausted.

"The authority has viewed this seriously. During the validity period, the subscriber should remain connected to avail of all services that do not have a bearing on the talk value," Trai said.

Trai also reiterated that the carry forward of unused balance on a pre-paid card has to be allowed during the grace period (the period during which the carry forward facility is available).

TThe authority has in the recent past received complaints alleging forfeiture of unused balance available in the cellular recharge coupons even in cases where the recharges were made within the grace period as intimated at the time of purchase of recharge coupons.

The authority examined the issues raised in the complaints and concluded such forfeiture of unused balance would be unfair, illogical and also against the spirit of the tariff order," Trai said. The cellular service providers have been asked to comply with the directive within 30 days.

Hands off

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• Forbearance on tariffs will give operators the freedom to respond quickly to market demand
• Trai retains power to pull up operator in case of violation of tariff norms
• Measures taken to protect pre-paid card mobile users following complaints