The regulator says it will intervene only when necessary, not on speculation about a possible 10-15 percent telecom tariff rise, while insisting operators must comply with its rule requiring voice- and SMS-only plans for consumers.
The Telecom Regulatory Authority of India (TRAI) will not act on speculation about a possible 10-15 percent rise in mobile tariffs, its chairman has said. He also made clear that operators must follow the rule requiring plans that offer only voice and SMS.
The comments come amid media reports suggesting that telecom companies could raise prices. Chairman Anil Kumar Lahoti's response signals that the regulator will wait for an actual move before reacting, rather than acting pre-emptively.
Lahoti made the remarks in a recent interview. He explained that tariffs currently sit under a forbearance framework, which leaves pricing decisions to telecom companies. According to him, competition is setting prices in the sector, and the regulator is keeping a close watch on developments.
Asked whether TRAI would step in if operators raised rates by 10-15 percent, Lahoti said the authority could not respond to conjecture, but would intervene as soon as it became necessary. He also defended the state of the market, saying Indian tariffs are probably the lowest in the world.
Operators yet to respond on data-free plans
On the directive to offer voice- and SMS-only plans, Lahoti said TRAI has not received a response from operators so far. He stressed, however, that the requirement is already part of issued regulations and that companies are expected to comply.
The aim, he said, is to let subscribers pay only for what they use. He pointed to crores of feature-phone users who do not consume data, as well as older subscribers who may not be comfortable with it. "It is important that the consumer has the choice to subscribe to the service they want," he said.
Data-bundled plans can stay
Lahoti clarified that TRAI has not asked operators to withdraw current plans that bundle data with calls and messages. Those offerings will continue to be sold, but companies must also make data-free options available alongside them. In effect, consumers would see a wider menu rather than a smaller one.
The final decision, he said, should rest with the consumer, who ought to be able to pick whichever plan suits their needs. The regulator, he indicated, sees consumer choice as the guiding principle behind the rule.
