In Short:
Reliance Jio, Airtel, and Vodafone Idea argue that current telecom plans effectively meet users’ needs, combining voice, data, and SMS. They oppose separate voice or SMS-only packs, stating these could complicate services and raise costs. The companies highlight a drop in SMS usage due to instant messaging apps. The regulator, Trai, is considering if specific plans should be introduced due to consumer concerns.
Mumbai: Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) have communicated to the telecom sector regulator that the existing tariff plans are sufficiently equipped to cater to the diverse needs of users, asserting that separate voice or SMS-only packs are unnecessary.
These three private telecom operators emphasized that data has become the core component of contemporary communications. They noted that the availability of unlimited data and voice allowances within bundled offerings has led to a significant increase in usage compared to the previous pay-as-you-go model.
Airtel articulated in its submission to an industry consultation paper published by the Telecom Regulatory Authority of India (Trai) that the current plans are “simplified, straightforward, and easy-to-understand.” The operator highlighted that these all-inclusive bundled packages of voice, data, and SMS have become increasingly popular, particularly among elderly consumers, as they eliminate the complexity and hidden charges associated with managing multiple plans.
Jio supported Trai’s findings from a recent survey indicating that 91% of subscribers found current telecom offerings to be affordable, while 93% expressed satisfaction with the choices available in the market.
Airtel cautioned that any efforts to un-bundle services and require voice-only plans would regress users to less efficient practices, necessitating frequent and multiple recharges. They asserted that such unbundling could lead to increased costs for individual services.
Vi highlighted concerns that introducing voice-only packs could exacerbate the digital divide, as non-data users might be deterred from upgrading and accessing digital services.
Regarding SMS-only plans, Airtel noted that 94% of subscribers send one or fewer SMS messages daily. Moreover, 98% send fewer than five SMSes per day. Jio corroborated this decline, reporting that the average number of outgoing SMS messages has diminished from 201 per month in March 2010 to approximately 11 in March of this year.
According to the telecom operators, SMS packs are losing relevance in the market largely due to the proliferation of instant messaging applications that operate over data. Additionally, Trai had previously limited SMS functionalities to mitigate spamming.
The consultation paper released last month by Trai suggested that the current bundled offerings might be compelling phone subscribers to pay for services they do not utilize.
Trai noted, “There is a perception among consumers that the bundled offerings of telecom services act as a constraint on the choice of subscription for telecom tariff offers.” Consequently, the authority is contemplating whether there is a necessity to amend the Telecom Consumers Protection Regulations (2012) to mandate the introduction of product-specific tariff offerings (voice/SMS/data and their combinations) in addition to the existing plans.
