NEW DELHI: Consumers can look forward to much simpler telecom bills with the Telecom Regulatory Authority of India (Trai) making an attempt to bring in tariff reforms by issuing a consultation paper on 'Certain issues relating to telecom tariffs' on Thursday.
Nearly 98% of India's telecom consumers are in the pre-paid segment. While call charges are at a record low, the multiplicity of packages makes it impossible for an average consumer to make rational choices based on his/ her individual needs. Tariff choices are mostly made on the advice of telecom companies themselves. Equally, making choices across operators is difficult in the absence of a common platform.
Trai admits that this consultation is being carried out on the behest of consumers and consumer groups pushing for greater transparency in the tariff system. The objective of the exercise is to bring out various issues that have a direct bearing on telecom tariff offers.
The three main areas of concern with respect to telecom tariffs are domestic and international roaming and SMS as it is clear from the data submitted by operators that in all these three areas, tariffs are not cost-based . However, this remains outside the purview of Trai's present consultation.
Regulators routinely regulate tariffs in multiple sectors , but in telecom, Trai has favoured a policy of forbearance in most cases because the intensity of competition since 2001 has consistently brought down tariffs. In 2001, even with just four to five operators , tariffs never went above regulated limits. However , the multiplicity of tariff packages is an entirely different matter and has invited Trai's intervention in the past as well.
Yet, a growing call for greater transparency has prompted Trai to look at tariff complexities afresh. The success of this exercise rests on a strong consumer response. Trai has posed nine questions in its consultation paper and unless consumer bodies respond with serious data and analysis by November 15, as Trai requires, the regulator may not be in a position to make much headway.
The consumer response in India is characteristically weak, while telecom companies are well-equipped to respond . In fact, telecom analysts say that service providers are likely to wait for all the stakeholder comments to come in, study them in some detail and then prepare a strong defence by November 25, the deadline set by Trai for counter comments.
Nearly 98% of India's telecom consumers are in the pre-paid segment. While call charges are at a record low, the multiplicity of packages makes it impossible for an average consumer to make rational choices based on his/ her individual needs. Tariff choices are mostly made on the advice of telecom companies themselves. Equally, making choices across operators is difficult in the absence of a common platform.
Trai admits that this consultation is being carried out on the behest of consumers and consumer groups pushing for greater transparency in the tariff system. The objective of the exercise is to bring out various issues that have a direct bearing on telecom tariff offers.
The three main areas of concern with respect to telecom tariffs are domestic and international roaming and SMS as it is clear from the data submitted by operators that in all these three areas, tariffs are not cost-based . However, this remains outside the purview of Trai's present consultation.
Regulators routinely regulate tariffs in multiple sectors , but in telecom, Trai has favoured a policy of forbearance in most cases because the intensity of competition since 2001 has consistently brought down tariffs. In 2001, even with just four to five operators , tariffs never went above regulated limits. However , the multiplicity of tariff packages is an entirely different matter and has invited Trai's intervention in the past as well.
Yet, a growing call for greater transparency has prompted Trai to look at tariff complexities afresh. The success of this exercise rests on a strong consumer response. Trai has posed nine questions in its consultation paper and unless consumer bodies respond with serious data and analysis by November 15, as Trai requires, the regulator may not be in a position to make much headway.
The consumer response in India is characteristically weak, while telecom companies are well-equipped to respond . In fact, telecom analysts say that service providers are likely to wait for all the stakeholder comments to come in, study them in some detail and then prepare a strong defence by November 25, the deadline set by Trai for counter comments.
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