December 26, 2024: In a landmark decision aimed at making telecom services more affordable and user-centric, the Telecom Regulatory Authority of India (TRAI) has announced new regulations mandating telecom operators to introduce call and SMS-only tariff plans. The move, part of the Telecom Consumers Protection (Twelfth Amendment) Regulations, 2024, is expected to benefit millions of users who primarily rely on basic voice and messaging services.
The new rules, issued on Monday, require telecom companies to offer plans focusing solely on voice calls and SMS, without bundling in data. This is particularly significant for India’s estimated 150 million (15 crore) basic mobile service users who do not require internet services but have previously been forced to purchase bundled plans that include data. These users will now be able to pay exclusively for the services they use—voice calls and SMS—resulting in potentially significant cost savings.
This move will also benefit users who maintain secondary SIM cards exclusively for calls and text messages. Until now, these users had little choice but to purchase data-inclusive plans, despite having no need for internet access. With the new regulation, TRAI aims to provide a more tailored experience for users, aligning telecom services with their actual needs.
However, telecom operators like Airtel and Vodafone Idea (Vi), which rely heavily on bundled services to increase their Average Revenue Per User (ARPU), may face challenges. These operators will need to rethink their strategies, particularly in offering data-centric services alongside traditional voice and SMS options. On the other hand, Reliance Jio, which operates solely on 4G and 5G networks, is likely to be less impacted by this change as its services are predominantly data-driven.
In addition to the call and SMS-only plans, TRAI has introduced changes to Special Tariff Vouchers (STVs). These vouchers, which provide more affordable options for customers, will now have an extended validity period of up to 365 days, up from the previous 90-day limit. This move is expected to reduce the frequency of recharges for users who rely on these low-cost plans. Furthermore, telecom operators will now be required to offer top-up vouchers in denominations starting as low as Rs 10, making small-value recharges more accessible, especially for budget-conscious consumers.
The decision is the result of extensive consumer surveys and feedback from various stakeholders. TRAI has emphasized that these changes aim to provide better value for money, ensuring that consumers are no longer forced to pay for services they do not use.