Good News: TRAI Mandates Voice and SMS-Only Recharge Plans for Feature Phone Users
Good News: TRAI Mandates Voice and SMS-Only Recharge Plans for Feature Phone Users
In a significant move, the Telecom Regulatory Authority of India (TRAI) has mandated telecom companies to offer recharge plans exclusively for voice calls and SMS, eliminating the compulsion to include internet data. The announcement was made as part of the Telecom Consumer Protection (12th Amendment) Regulation, 2024, introduced on Monday.
Why This Matters
TRAI’s initiative addresses the needs of approximately 150 million feature phone users in India who do not require internet data. These users include individuals in rural areas, elderly citizens, dual-SIM owners, and others who primarily rely on voice and SMS services. This move allows consumers to pay only for services they use, ensuring affordability and tailored options for non-data users.
Key Changes
1. Voice and SMS-Specific Recharge Plans:
Telecom operators are now required to provide at least one Special Tariff Voucher (STV) exclusively for voice calls and SMS. The validity of such plans can extend up to 365 days.
> “The service provider shall offer at least one Special Tariff Voucher exclusively for voice and SMS with validity period not exceeding three hundred and sixty-five days,” TRAI stated in the amendment.
2. Extended Validity:
The validity of special recharge coupons has been increased from 90 days to a maximum of 356 days, giving users greater flexibility.
3. Flexible Recharge Denominations:
Telecom operators can now offer recharge vouchers of any denomination, with a minimum recharge value set at ₹10. Previously, recharge amounts were limited to multiples of ₹10.
Consumer Feedback Drives the Decision
TRAI’s consultations revealed a demand for voice and SMS-only plans from various consumer segments, including senior citizens, families with home broadband, and non-tech-savvy users. TRAI emphasized that this move does not conflict with the government’s digital inclusion goals, as service providers are still free to offer bundled and data-only vouchers.
Challenges for Telecom Operators
The decision could impact the revenue models of major telecom companies like Reliance Jio and Bharti Airtel, which have been focused on transitioning 2G users to 4G and 5G networks to boost Average Revenue Per User (ARPU).
Reliance Jio: The company has previously referred to 2G as a barrier to India’s digital growth and has advocated for its phase-out. Jio’s push for 5G adoption aims to free up 4G capacity and attract remaining 2G users.
Bharti Airtel and Vodafone Idea: Both companies are aggressively expanding their 4G networks to accelerate the migration of 2G users to higher-speed services.
Conclusion
TRAI’s move brings good news to millions of Indian consumers by offering affordable and customized recharge options. However, it also challenges telecom giants to balance consumer needs with their revenue strategies in an evolving market.
