The Telecom Regulatory Authority of India (TRAI) has introduced new regulations under the Telecom Consumers Protection (Twelfth Amendment) Regulations, 2024, to make telecom services more affordable and user-centric. Announced on Monday, the amendments focus on enhancing the accessibility and affordability of basic telecom services, particularly for users who rely primarily on voice calls and SMS or use secondary SIM cards for specific purposes.
A key highlight of the amendment mandates telecom operators to provide tariff plans exclusively for voice calls and SMS, addressing a long-standing concern of millions of users. An estimated 150 million users in India, many of whom do not require data services, are compelled to purchase bundled plans that include data. The introduction of these SMS-and-call-only plans will allow such users to pay only for the services they need, reducing unnecessary costs. This move also benefits users who keep secondary SIM cards solely for calls or messages, as they will no longer need to pay for unused data benefits.
TRAI has also enhanced the validity of Special Tariff Vouchers (STVs), allowing them to remain active for up to 365 days, a significant increase from the previous limit of 90 days. This change provides consumers with long-term affordability and reduces the frequency of recharges. Furthermore, telecom operators are now required to offer top-up vouchers in denominations starting from as low as ₹10, ensuring greater convenience and accessibility for users with limited budgets.
While the move is consumer-friendly, it poses challenges for telecom operators. Companies like Airtel and Vodafone Idea (Vi), which depend heavily on bundled plans to boost Average Revenue Per User (ARPU), may need to revise their strategies. Reliance Jio, operating exclusively on 4G and 5G networks, is expected to be less affected by these changes.
In a related development, Vodafone Idea Limited (Vi) has welcomed the government’s decision to waive the requirement for Bank Guarantees (BG) on spectrum payments, calling it a crucial relief for the telecom sector. This decision, part of ongoing telecom reforms, is expected to ease the financial burden on operators and encourage further investments in 4G and 5G infrastructure. Previously, Vodafone Idea was required to provide BGs aggregating to ₹24,800 crores for spectrum installations, a substantial financial strain on the company.
The waiver applies to spectrum auctions conducted before the 2021 reforms, including those held in 2012, 2014, 2015, 2016, and 2021, provided that the pro-rated value of the spectrum aligns with the payments made by operators. This reform underscores the government’s commitment to fostering a sustainable and robust telecom industry.
