Daijiworld Media Network - New Delhi
New Delhi, Dec 24: The Telecom Regulatory Authority of India (TRAI) has revised its tariff regulations, requiring mobile service providers to offer recharge plans exclusively for voice calls and SMS, without mandating the inclusion of Internet data.
Announced on Monday, December 24, the amendment is designed to cater to consumers who do not rely on mobile data, offering them greater flexibility and cost-effective options. Additionally, the validity of special recharge coupons has been extended from the current maximum of 90 days to up to 365 days.
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This change is expected to benefit a large segment of the Indian population, including approximately 150 million 2G users, dual-SIM owners, senior citizens, and residents of rural areas. By introducing this mandate, consumers can now pay only for the services they require, avoiding unnecessary expenses on unused data.
Catering to non-data users
According to data from telecom operators, around 150 million subscribers in India continue to use feature phones, highlighting the necessity for non-data-specific recharge options. TRAI’s revised regulations state that telecom companies must provide at least one Special Tariff Voucher (STV) exclusively for voice and SMS services, with a validity period of 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 clarified in its Telecom Consumers Protection (Twelfth Amendment) Regulations, 2024.
Impact on telecom giants’ push for data adoption
While TRAI’s move focuses on consumer choice, it contrasts with the aggressive strategies of leading telecom players like Reliance Jio and Bharti Airtel to transition users from 2G to 4G or 5G networks. Both companies aim to increase their Average Revenue Per User (ARPU) by promoting bundled plans that include unlimited data and voice services.
Reliance Jio has consistently emphasised the need to phase out 2G services, labeling them a hurdle to India’s digital progress.
Mukesh Ambani, chairman of Reliance Industries, recently highlighted how the growing adoption of 5G will free up 4G bandwidth, enabling the company to onboard remaining 2G users onto its 4G network.
Similarly, Bharti Airtel, under Sunil Mittal’s leadership, has focused on migrating its 2G customers to 4G for better revenue generation. Vodafone Idea (Vi) has also been expanding its 4G network to facilitate this shift.
Addressing consumer needs
TRAI’s consultation process revealed a strong demand for voice-and-SMS-only plans among specific consumer groups, such as senior citizens, households with broadband access, and individuals who are less reliant on technology.
Recognising these needs, TRAI stated, "Mandating Voice and SMS-only STVs will provide an option to subscribers who do not require data. This will not hinder the government’s data inclusion initiative, as service providers are still free to offer bundled and data-only vouchers."
Increased flexibility in recharge options
In addition to mandating voice-and-SMS-only plans, TRAI has introduced more flexibility in recharge denominations. Telecom operators can now offer recharge vouchers of any value, while still being required to provide a minimum recharge option of Rs 10. Previously, recharge denominations were restricted to Rs 10 and its multiples.
"The Authority is of the view that reserving denominations of Rs 210 and multiples thereof only for top-up vouchers be eliminated. TSPs may now offer vouchers of any denomination, provided they maintain the mandate of at least one Top-Up voucher of Rs 10," TRAI stated in its note.
Industry resistance and consumer relief
Telecom companies like Jio, Airtel, and Vi had earlier opposed the introduction of voice-and-SMS-only plans, arguing that data is essential for modern communication. They claimed that bundled plans with unlimited data and voice services had significantly increased user engagement compared to older pay-as-you-go models.
Despite industry resistance, TRAI’s decision brings much-needed relief to millions of Indians, ensuring affordable and practical mobile connectivity options. However, telecom operators now face the challenge of balancing consumer demand for flexible plans with their revenue goals in a market increasingly driven by data usage.