Date:22/03/2006 URL: http://www.thehindu.com/2006/03/22/stories/2006032210211800.htm
Back

Business

TRAI fixes norms for lifetime plans

Special Correspondent

Restricts companies from hiking tariff on any item


  • Code of practice on billing introduced
  • Agencies to audit billing to be named

    NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on Tuesday incorporated safeguards to protect consumer interest in the lifetime validity tariff schemes being offered by phone companies. These include a restriction on the companies from hiking the tariff on any item specified in the plans and an obligation to inform the subscribers of the month and year of the expiry of current licence.

    The amendment to the Telecommunication Tariff Order thus addresses a moral issue that had arisen after phone companies began promoting lifetime schemes — their licences are for a limited span ranging from seven to 15 years while they were offering a tariff that went well beyond the licence period. It also answered a question in the minds of the subscribers whether there would be subsequent demands from phone companies after the initial upfront payment. TRAI made it clear that in the case of tariff plans offered or marketed as having lifetime or unlimited validity, the subscribers should get the service as long as the phone company is permitted to provide such telecom service under the current licence or renewed licence. TRAI has also reiterated the right of the subscribers to choose any tariff plan at any point of time.

    TRAI on Tuesday released a `Regulation on Code of Practice for Metering and Billing Accuracy.' With no stakeholder replying to the consultation paper on billing issues that also contained a code of practice for metering and billing accuracy, TRAI decided to issue the regulation. It has directed companies before enrolling a customer to inform in writing, within a week of activation of service, the complete details of the tariff plan. Charges for a value added service (download of film clip, ring tone and the like) or entry to an interactive service (such as a games) must be provided before the customer commits to use the service.

    Post-paid payments should be credited to the customer's account within three working days of receiving the payment. For pre-paid customers, top-up credit should be applied to a customer's account within 15 minutes of its application. Phone companies have been asked to maintain a documented process for identifying, investigating and dealing with billing complaints. TRAI will notify companies/agencies capable of auditing the billing system and to certify the metering and billing system of service providers. These companies/agencies will be named on April 30.

    © Copyright 2000 - 2009 The Hindu