TRAI Refuses To Intervene In Tariff Plans; Demands Transparency From Telcos In Tariff Updates

Speculations were rife, that Telecom Regulatory Authority Of India or TRAI will set a benchmark in finalizing mobile tariffs, for all telecom operators.

But now, as per incoming reports, it seems that they will not interfere.

Meanwhile, TRAI has demanded that all telecom operators be more transparent in announcing the tariff rates.

What does this mean?

No Interference by TRAI In Fixing Mobile Tariff

As per some insiders, TRAI has refused to interfere in determining the floor price or the minimum basic rate for telecom services in India.

As per the sources, this decision has been made by TRAI, since almost all the telecom operators have announced a price hike, and in case TRAI interferes now, the process will ‘derail’.

Hence, we are expecting that TRAI will set the floor-price of mobile tariff, once the price hike has been done, and the issue settles for few months.

TRAI’s move to fix the minimum call rates and data rate is, infact, against open market policy, and the insiders have told that TRAI is aware of this. They are saying that TRAI considers this interference of fixing mobile data and voice rate as the ‘last resort’.

Due to heavy losses, Airtel, Vodafone and even Jio has announced price hike, starting December 1st. 

We estimated that voice calls can be expensive by 67%, while data rates can go up by 20%, once the price hike actually happens next month onwards.

Airtel and Jio users can save money by opting for advanced pre-paid plans, which will continue at the old rates, even after price hike.

TRAI Demands More Transparency In Tariff Updates

Meanwhile, when it comes to publishing and announcing tariff updates, TRAI has demanded more ‘transparency’ by the telecom operators.

A consultation paper is expected to be released by TRAI regarding this transparency factor, and public opinion will be sought.

In a statement, TRAI said, “Therefore, it is felt that a comprehensive review of extant provisions aimed at transparency relating to flow of information from telecom service providers to consumers, is essential,”

This consultation will not be related with the setting of floor price or the price hike, but the ways by which, the telecom operators be more transparent, and open while announcing the tariff changes, and the current plans.

It seems that due to lack of information, several users end up choosing the wrong plans.

We will keep you updated, as more details come in.