Date:23/03/2006 URL: http://www.thehindubusinessline.com/2006/03/23/stories/2006032303790100.htm

Back TRAI bars operators from changing tariff of lifetime prepaid offer

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TRAI bars any hike in tariff by operators

Ringing a bell
The order assumes significance in the light of claims made by the cellular operators that they were free to change the tariff plan after six months of launching the scheme.
Operators had also said that if regulatory or policy changes do not make the lifetime plan viable, they had the freedom to withdraw it any time.

Mobile phone

New Delhi , March 22

Lifetime tariff plans offered by cellular operators will indeed be available for a lifetime. The Telecom Regulatory Authority of India has given an order that bars cellular operators from changing the tariff of the lifetime prepaid offer as long as the operator is in business.

"Hike in tariff is prohibited for any tariff item specified in the lifetime tariff plans during the entire lifelong validity period. In the case of tariff plans other than plans with lifetime validity which have a component of upfront payment, service providers are not allowed to hike tariffs during the promised validity period of such plans," TRAI said in its order.

The order assumes significance in the light of claims made by the cellular operators that they were free to change the tariff plan after six months of launching the scheme. Cellular operators had also said that if regulatory or policy changes do not make the lifetime plan viable, then they had the freedom to withdraw it any time.

Issuing the order, TRAI said, "With a view to protect the interests of subscribers who make an upfront payment in lieu of certain promised features including the validity and also to bring out more clarity to the concept of lifetime validity, the Authority considered it necessary to issue orders in this regard." The order practically immunises subscribers of this plan from any possible increase in tariffs in the future.

The TRAI order says that in the case of tariff plans offered as having lifetime or unlimited validity in lieu of an upfront payment, subscribers will continue to get service as long as the service provider is permitted to provide telecom services.

TRAI had earlier issued a consultation paper asking the operators as to what would happen if there were a change in traffic patterns and Interconnect Usage Charge (IUC) regime and how the consumers would be protected against a hike in tariff.