Telcos oppose TRAI push for more voice-only plans
New Delhi, May 8 -- What started as a consumer-choice issue is turning into a larger debate over telecom tariffs, digital adoption and even future network investments. Telecom operators are pushing back against the regulator's draft regulations that require them to offer more voice-and-SMS-only recharge plans with prices reduced in line with the exclusion of data benefits.
India's top telcos Reliance Jio, Bharti Airtel and Vodafone Idea are arguing that there is no evidence of strong consumer demand for such plans, and that the move could push users away from digital services in the absence of data in plans. They also said the norms go against the tariff forbearance-based regime, could increase spam by unregistered telemarketers, and may impact their 5G return on investments and future 6G investments.
"If sufficient demand existed for voice-only special tariff vouchers across all validity periods, service providers would already be offering them in a competitive market. The fact that they have not done so suggests that demand does not exist," the Cellular Operators Association of India (COAI) said in its submission to the Telecom Regulatory Authority of India (TRAI) on 5 May.
The association, which represents private telecom operators, said the earlier requirement by TRAI for a 365-day voice-only plan was a "reasonable and balanced compromise". It, however, said extending this to every validity period could be excessive and overly intrusive.
Last month, in an amendment to its draft consumer protection regulations,, TRAI observed that operators have fallen short of their earlier mandate on voice-and-SMS-only plans, limiting choice and blunting price benefits for users. Telcos currently offer a couple of long-duration options such as 80/84 days or annual packs for such services. On the other hand, the validity period options for data-bundled packs have a long range that starts from as low as 14 days.
Voice-and-SMS-only plans were first mandated by TRAI in December 2024. Operators were asked to offer at least one special tariff voucher (STV) exclusively for this category with a validity span not exceeding 365 days.
"After the introduction of these exclusive voice and SMS STVs, several concerns and representations from consumers and their associations have been received by the Authority, expressing need for shorter-duration voice and SMS only packs," TRAI said in the draft regulations.
The regulator noted that low-income consumers or those using feature phones require shorter validity packs so that they can recharge as per their needs. TRAI said consumers who do not require data are often compelled to buy bundled packs with data, leading to avoidable expenditure and limited choice.
Reliance Jio opposed TRAI's arguments, in its 5 May submission to the regulator, saying that "40-45% of subscribers on voice-only plans are still purchasing data add-ons, indicating that even in this segment is not purely voice centric."
Among users on the Rs.189 entry-level bundled low data plan with only 2 GB data, 88% users actively consume data at significant levels, Jio said. "The market has effectively evolved into a data first ecosystem, with voice as a complementary service. Therefore, the assumption of a possible, sizable, distinct 'voice-only' customer base is misplaced," the operator said....
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