TRAI Increases Processing Fee, Now Pay Rs.1 more For Every Mobile Recharge above Rs.20

India’s prepaid mobile service subscribers now will have to pay an extra Rs. 1 every time they recharge or Top-Up their prepaid account for more than Rs. 20. This appears to be a setback for more than 90% mobile service users in the county.

India’s telecom watchdog Telecom Regulatory Authority of India  (TRAI)  has today issued amendments to the Telecommunication Tariff Order (TTO) enhancing the ceiling or processing fee from Rs.2 to Rs.3 for certain category of top-up vouchers used by mobile prepaid subscribers for addition of monetary value (talk-time) to their account.

Currently a ceiling / processing fee of Rs.2 is applicable on all top-ups which provide monetary value (talk-time). After issue of this new tariff amendment the processing fee applicable for top-up vouchers will be as follows :

(i) Denominations having maximum retail price below Rs.20 -:  Rs.2  as ceiling.

(ii) Denominations having maximum retail price of Rs.20 or more -: Rs.3 as ceiling.

While increasing the processing fee on top-up vouchers the Authority has sought to protect the interests of low end users by excluding the lower denominations of top-up vouchers from the hike. The Authority has also mandated the service providers to ensure availability of Rs.10 denomination as top-up voucher.

Earlier through the Union Budget, finance ministry of govt of India has increased service tax (2% more from the existing) on mobile services and now with the increase in processing fee will become another big blow to “price and talk-time conscious” prepaid mobile users in the country.

The new order by TRAI comes after telecom operators body COAI (GSM) and AUSPI (CDMA – UAS)  made written request to the TRAI that there have been inflationary pressures over the last three years, since the ceiling/processing  fee of Rs.2 was prescribed by TRAI.

This Article Was Written By: Sanjay Bafna

Sanjay Bafna - Senior Editor

Sanjay Bafna is an entrepreneur and Editor at TelecomTALK covering mobile operators, 3G, Broadband, 4G, LTE, Telecom Policies & Regulations and Mobile Phones. He is well known Telecom and Mobile Analyst, Love Tea and Chocolates.

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  • kunal April 23, 2012 at 4:46 pm

    Dear All,
    It has been mandatory by TRAI in its NATIONAL CONSUMER PROTECTION REGULATION DATED -: 6th JANUARY 2012 THE FOLLOWINGS-
    CHAPTER 3-:
    7– Information to pre-paid consumers relating to usage.— Every
    service provider shall, within forty five days ( amended to 75 days later ) from the date of issue of these
    regulations, immediately on making any deduction from the account of a prepaid
    consumer, provide through SMS, the following information:-

    (a) after every call, –
    (i) duration of the call;
    (ii) charges deducted for the call;
    (iii) balance in the account; and
    (iv) in case of Special Tariff Voucher, minutes of usage deducted and
    balance minutes of usage available;

    (b) after every session of data usage over mobile, —
    (i) quantum of data usage;
    (ii) charges deducted; and
    (iii) the balance in the account;
    Vodafone Haryana is not providing these details . The following youtube videos uploaded by me shows this. Please watch these videos and refer to others also. And also check with your operator whether they are following these regulations or not. If not then record a video and upload like I have done and spread the word to TRAI by sending them mail .

    Videos-

    http://www.youtube.com/watch?v=o0VxCFfOSuU

    http://www.youtube.com/watch?v=fAtVmmsNhvs

    Reply
  • S.Sudhakar April 23, 2012 at 11:01 am

    To Kapil :

    Well said. Because AIRTEL provides full talkvalue on Rs.333 and Rs.444 topup in most of the circles and also some providers provide full talkvalue for online recharge. Anyway this is useless for those who do not have computer or laptop in their home.

    Reply
  • S.Sudhakar April 23, 2012 at 11:00 am

    To Abc :
    Thats what will happen in future !!!!.

    Reply
  • S.Sudhakar April 23, 2012 at 10:59 am

    To Chinmoy :

    I have rights to express my opinion and feedback. You do not have any qualities to order me to use landline. Ok?.

    Reply
  • Kapil April 21, 2012 at 2:39 pm

    Better to use FTT idea provides FTT on 30, 50, 55, 77, 111, etc. these all the lucky recharges except rs. 111. To get lucky recharge dial 500 or *147*99#.
    Airtel is the only operator not provide any FTT, we have of porting.
    Aircel also provide ftt + extra tt on rs. 30, 50(55), 100(115).

    Reply
  • Abc April 21, 2012 at 1:10 pm

    Sudhakar :
    To Saurabh and Nadar :
    Then after that operators will charge for incoming call. On the whole telecom sector will move backwards !!!!!!!!!.

    You think too much..backward!!

    Reply
  • Arora April 21, 2012 at 11:14 am

    I generally use STV RS.555
    (TATA DOCOMO mumbai,With full TT and All locaL Calls @ 1paisa/2 second for 60Days there after 1 paisa/Second)…

    Reply
  • Chinmoy April 21, 2012 at 10:09 am

    @Sudhakar
    you are a bigtime wannbe man.

    Reply
  • Chinmoy April 21, 2012 at 10:09 am

    @Sudhakar
    Dude you should go back to using landline if you have so many problems with mobiles.

    Reply
  • Sudhakar April 21, 2012 at 8:19 am

    To Saurabh and Nadar :

    Even though Rs.1 is nothing, I think it is the base for bringing the processing fees back to the case before 2006. Then after that operators will charge for incoming call. On the whole telecom sector will move backwards !!!!!!!!!.

    Reply
  • Kaushik April 20, 2012 at 8:32 pm

    I don’t understand why TRAI and DoT are forcing the telcos to launch inter-circle MNP!!

    Reply
  • Kaushik April 20, 2012 at 8:30 pm

    kaka :

    Nadar :

    Saurabh :
    @Arora
    Are you serious? I think you have been fooled as there is nothing like this. I mean Rs. 12 for Rs. 10 top-up or so. Better you recharge online and you will get more than full TT on selected denominations.
    You don’t have to pay extra for processing fee as it is being levied from the amount you pay. For example: Rs. 50 recharge which was giving Rs. 42.50 as TT will now give Rs. 41.50.
    @Praveen
    You are right that processing fee is charged by operators and not by TRAI but operators were requesting this Rs. 1 hike from last few months and finally TRAI allowed them to set it to Rs.3. Any recharges under Rs. 20 will attract Rs. 2 as PF as before. It is hiked for recharges over Rs. 20.
    There were days in beginning when processing used to be Rs. 101 + 8% S.T on Rs. 300 recharge and customers used to get only 175 as TT for Rs. 300. But the things changed and PF came to as low as Rs.2. Now a Rs. 1 hike is nothing.
    I still remember we had to recharge with Rs. 250 for Rs. 220 TT and 1 month validity as there was no concept of lifetime validity. Tings are really cheap now because of large number of subscribers. Volumes changed everything.

    I used to recharge for Rs. 331 (Inclusive of taxes) and got a talk time of around 165 Rs. with 30 days validity. This was airtel in 2004. Then there was another recharge for Rs. 200 or 250 (cant remember exactly) which used to give 50 Rs. talktime with 30 days validity. This was in early 2005. Only then did lifetime prepaid come about. And now having Rs. 3 processing fee is no big deal.
    And by the way In 2003 i used to pay Rs. 6 per min for STD calls even within the same state if the distance is more than 200 km. We have come a long way from those days. So pls stop cribbing for nothing.

    + 1 million

    +99999999999999999999999999999999999999999999999999999999999999999999999999999

    Reply
  • kaka April 20, 2012 at 8:06 pm

    Nadar :

    Saurabh :
    @Arora
    Are you serious? I think you have been fooled as there is nothing like this. I mean Rs.12 for Rs.10 top-up or so. Better you recharge online and you will get more than full TT on selected denominations.
    You don’t have to pay extra for processing fee as it is being levied from the amount you pay. For example: Rs.50 recharge which was giving Rs.42.50 as TT will now give Rs.41.50.
    @Praveen
    You are right that processing fee is charged by operators and not by TRAI but operators were requesting this Rs.1 hike from last few months and finally TRAI allowed them to set it to Rs.3. Any recharges under Rs.20 will attract Rs.2 as PF as before. It is hiked for recharges over Rs.20.
    There were days in beginning when processing used to be Rs.101 + 8% S.T on Rs.300 recharge and customers used to get only 175 as TT for Rs.300. But the things changed and PF came to as low as Rs.2. Now a Rs.1 hike is nothing.
    I still remember we had to recharge with Rs.250 for Rs.220 TT and 1 month validity as there was no concept of lifetime validity. Tings are really cheap now because of large number of subscribers. Volumes changed everything.

    I used to recharge for Rs 331 (Inclusive of taxes) and got a talk time of around 165 Rs with 30 days validity. This was airtel in 2004. Then there was another recharge for Rs 200 or 250 (cant remember exactly) which used to give 50 Rs talktime with 30 days validity. This was in early 2005. Only then did lifetime prepaid come about. And now having Rs 3 processing fee is no big deal.
    And by the way In 2003 i used to pay Rs 6 per min for STD calls even within the same state if the distance is more than 200 km. We have come a long way from those days. So pls stop cribbing for nothing.

    + 1 million

    Reply
  • Saurabh April 20, 2012 at 6:41 pm

    @i45
    What’s wrong with you? Those who recharge for One user paying 100 makes an impact but 100 users paying Rs.1 don’t.

    Reply
  • Raj April 20, 2012 at 6:22 pm

    @Xyz
    Ritely said

    Reply
  • Nadar April 20, 2012 at 6:03 pm

    Saurabh :
    @Arora
    Are you serious? I think you have been fooled as there is nothing like this. I mean Rs.12 for Rs.10 top-up or so. Better you recharge online and you will get more than full TT on selected denominations.
    You don’t have to pay extra for processing fee as it is being levied from the amount you pay. For example: Rs.50 recharge which was giving Rs.42.50 as TT will now give Rs.41.50.
    @Praveen
    You are right that processing fee is charged by operators and not by TRAI but operators were requesting this Rs.1 hike from last few months and finally TRAI allowed them to set it to Rs.3. Any recharges under Rs.20 will attract Rs.2 as PF as before. It is hiked for recharges over Rs.20.
    There were days in beginning when processing used to be Rs.101 + 8% S.T on Rs.300 recharge and customers used to get only 175 as TT for Rs.300. But the things changed and PF came to as low as Rs.2. Now a Rs.1 hike is nothing.
    I still remember we had to recharge with Rs.250 for Rs.220 TT and 1 month validity as there was no concept of lifetime validity. Tings are really cheap now because of large number of subscribers. Volumes changed everything.

    I used to recharge for Rs 331 (Inclusive of taxes) and got a talk time of around 165 Rs with 30 days validity. This was airtel in 2004. Then there was another recharge for Rs 200 or 250 (cant remember exactly) which used to give 50 Rs talktime with 30 days validity. This was in early 2005. Only then did lifetime prepaid come about. And now having Rs 3 processing fee is no big deal.
    And by the way In 2003 i used to pay Rs 6 per min for STD calls even within the same state if the distance is more than 200 km. We have come a long way from those days. So pls stop cribbing for nothing.

    Reply
  • i45 April 20, 2012 at 5:16 pm

    bsnl providing full TT on rc 55 in AP

    Reply
  • DB April 20, 2012 at 5:02 pm

    @ AP – for RICH persons like you RE 1 may be nothing. For the MASS of mobile users who top up maybe once a month with Rs 20, taking away an additional Re 1 is a LOT.

    >> This is hardly a ‘major setback’ to prepaid users. The hike is of just 1 rupee!

    Reply
  • Xyz April 20, 2012 at 4:47 pm

    AP :
    This is hardly a ‘major setback’ to prepaid users. The hike is of just 1 rupee!

    Exactly. You guys are reacting like Mamata Banerjee on Railway fare hikes. whats the value of a rupee when compared to inflation. People dont mind buying expensive handsets and cry for a rupee?

    Reply
  • AP April 20, 2012 at 4:20 pm

    This is hardly a ‘major setback’ to prepaid users. The hike is of just 1 rupee!

    Reply
  • Saurabh April 20, 2012 at 4:17 pm

    @Arora
    Are you serious? I think you have been fooled as there is nothing like this. I mean Rs.12 for Rs.10 top-up or so. Better you recharge online and you will get more than full TT on selected denominations.

    You don’t have to pay extra for processing fee as it is being levied from the amount you pay. For example: Rs.50 recharge which was giving Rs.42.50 as TT will now give Rs.41.50.

    @Praveen
    You are right that processing fee is charged by operators and not by TRAI but operators were requesting this Rs.1 hike from last few months and finally TRAI allowed them to set it to Rs.3. Any recharges under Rs.20 will attract Rs.2 as PF as before. It is hiked for recharges over Rs.20.

    There were days in beginning when processing used to be Rs.101 + 8% S.T on Rs.300 recharge and customers used to get only 175 as TT for Rs.300. But the things changed and PF came to as low as Rs.2. Now a Rs.1 hike is nothing.

    I still remember we had to recharge with Rs.250 for Rs.220 TT and 1 month validity as there was no concept of lifetime validity. Tings are really cheap now because of large number of subscribers. Volumes changed everything.

    Reply
  • Ashish Rana April 20, 2012 at 3:58 pm

    Praveen :
    I thought this processing fee is levied by operators., if it’s levied by TRAI will the amount (processing fee) go to TRAI or operators???

    amount will go to the operators ……

    Reply
  • DB April 20, 2012 at 3:23 pm

    @Arora
    @ ARORA – Retailers charging extra is nothing to do with this! If someone wants to pay MORE than the MAXIMUM Retail Price, thats his stupidity! Consumers need to GET SMART and boycott such unscrupulous characters – buy coupons DIRECT from the company to avoid get cheated!! (In case the company outlet is not near one then its BAD LUCK!!).

    >> Already many retailers in Mumbai are charging extra Rs. 1 or Rs. 2 above the actual amount, For every Recharge Whether the denomination of Recharge is Rs. 50 or Rs. 500,Even for Rs. 10 they Charge Rs. 12 (2 Rs. extra)…

    Who is asking them to use a 3RD PARTY APPLICATION ? Ask them to get a SIM/PHONE and do a DIRECT E-RECHARGE for the concerned operator !!
    >> I have asked the reason they say that they have to pay Extra for
    “Mobile Recharge API”a mobile recharge application through this they can recharge all differnt mobile no. from same Handset…..And now more we have to pay…..

    Reply
  • DB April 20, 2012 at 3:21 pm

    @Praveen
    @ PRAVEEN – Processing Fee is collected by Operators and handed over to Government, similar to the Service Tax

    Reply
  • Shiva April 20, 2012 at 2:47 pm

    This is expected..

    Reply
  • Arora April 20, 2012 at 2:44 pm

    Already many retailers in Mumbai are charging extra Rs.1 or Rs.2 above the actual amount, For every Recharge Whether the denomination of Recharge is Rs.50 or Rs.500,Even for Rs.10 they Charge Rs.12 (2 rs. extra)…
    I have asked the reason they say that they have to pay Extra for
    “Mobile Recharge API”a mobile recharge application through this they can recharge all differnt mobile no. from same Handset…..And now more we have to pay…..

    Reply
  • kaka April 20, 2012 at 2:32 pm

    Thats a good move by trai, atleast operator will get some marjin

    Reply
  • Praveen April 20, 2012 at 2:24 pm

    I thought this processing fee is levied by operators., if it’s levied by TRAI will the amount (processing fee) go to TRAI or operators???

    Reply

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