TRAI proposes mobile plans at lower prices offering only voice, SMS services

• The Telecom Regulatory Authority of India (TRAI) released the Draft Telecom Consumer Protection (Thirteenth Amendment) Regulation, 2026 on April 7.

• It proposed to make it mandatory for telecom operators to issue mobile plans with only calling and SMS services at a lower price compared to their current special tariff vouchers which includes data facility as well.

• TRAI had earlier issued Telecom Consumer Protection (Twelfth Amendment) Regulation, 2024 wherein the Authority mandated that every telecom service provider shall offer at least one special tariff voucher exclusively for voice and SMS. 

• Subsequent to this, it is observed that only a few special tariff vouchers (STVs) are being offered for voice and SMS.

• While introducing these voice and SMS-only packs, telecom operators initially fixed relatively higher prices and these were not reduced in proportion to the removal of data benefits from bundled plans. 

• The regulator said the outcome of the previous change made has not been adequate and therefore it has come up with a new proposal.

• The proposed amendment seeks to address this issue by mandating that for every unique validity period offered under special tariff vouchers with voice, SMS and data (whether with or without value added services), the service provider shall also offer a corresponding special tariff voucher exclusively for voice and SMS.

• Such special tariff vouchers shall be priced with largely proportional reduction in tariff.

• The amendment will enhance transparency, prevent forced procurement of unwanted bundled services, and ensure that consumers who do not require data are not made to pay for it or placed at a disadvantage.

What is the role of TRAI?

• The regulation of telecom services in India finds its genesis in the Indian Telegraph Act, 1885, which grants the central government exclusive privilege to establish telegraph services. 

• The government also has the power to grant licenses to other operators to carry on those services. Until the mid-90s, the government exercised a monopoly over this sector, with the Department of Telecommunications (DoT) being responsible for administering telecom services throughout the country.

• International telecom services were offered by Videsh Sanchar Nigam Ltd. (VSNL), a government-owned company.

• The National Telecom Policy, announced by the government in 1994 (NTP, 1994), sought to change this position by allowing for the participation of private entities. This led to the opening up of basic telecom services in addition to Value Added Services (VAS) such as cellular services and radio paging that had already been thrown open to private participation in 1992.

• The NTP, 1994 brought with it the inevitable need for an independent regulatory framework that would separate the government’s regulatory functions from its service-providing functions, in line with global best practices. 

• This led to the creation of the TRAI, with effect from February 20, 1997, pursuant to the provisions of the Telecom Regulatory Authority of India Act, 1997 (TRAI Act). 

• The definition of “telecommunication services”, given under the TRAI Act, covers a range of sectors, including basic and cellular telecom services, provision of Internet access and broadcasting services. 

• TRAI was given the responsibility of regulating telecom services, including fixation and revision of tariffs, determining QoS standards and fixing the terms and conditions for inter-connectivity between providers.

• The mission of the Telecom Regulatory Authority of India (TRAI) is to create and nurture conditions for the growth of the telecommunication and broadcasting sectors in the country, in a manner and at a pace, which will enable India to play a leading role in the emerging global information society.

• TRAI consists of one chairperson, two full-time members and two part-time members.

Amendments in TRAI Act

• The TRAI Act was amended by an ordinance, effective from January 24, 2000, establishing a Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI. 

• TDSAT was set up to adjudicate any dispute between a licensor and a licensee, between two or more service providers, between a service provider and a group of consumers, and to hear and dispose of appeals against any direction, decision or order of TRAI.

• Following this amendment, TRAI was vested with recommendatory and regulatory functions, while dispute settlement functions were handed over to TDSAT.

• The TRAI (Amendment) Act, 2014 made another change to the terms of appointment of the Chairperson and members. It was clarified that they would require the prior permission of the government in order to accept any position with the government or in the telecommunication industry within a period of two years from the date on which they cease to hold office with TRAI.

Objectives of TRAI:

The goals and objectives of TRAI are focused towards providing a regulatory regime that facilitates achievement of the objectives of the New Telecom Policy that was adopted in 1999 (NTP, 1999).

They are:

• Increasing tele-density and access to telecom in the country at affordable prices.

• Making available telecommunication services which in terms of range, price and quality are comparable to the best in the world.

• Providing a fair and transparent policy environment which promotes a level playing field and facilitates fair competition.

• Establishing an interconnection regime that allows fair, transparent, prompt and equitable interconnection.

• Re-balancing tariffs so that the objectives of affordability and operator viability are met in a consistent manner.

• Protecting the interest of consumers and addressing general consumer concerns relating to availability, pricing and quality of service (QoS) and other matters.

• Monitoring the QoS provided by the various operators.

• Providing a mechanism for funding of net cost areas/ public telephones so that Universal Service Obligations (USO) are discharged by telecom operators for the spread of telecom facilities in remote and rural areas.

• Preparing the grounds for smooth transition to an era of convergence of services and technologies.

• Promoting the growth of coverage of radio in India through commercial and non-commercial channels. 

• Increasing consumer choice in reception of TV channels and choosing the operator who would provide television and other related services.

• Migration to digital addressable systems in broadcasting.

(The author is a trainer for Civil Services aspirants.)