Indian telecom operators such as Reliance Jio, Vodafone Idea, BSNL, and Bharti Airtel frequently introduce new tariff plans, often tweaking their prepaid offerings. However, Reliance Jio and Vodafone Idea tend to roll out such tariff benefits or revisions more frequently, especially during festivals and special occasions. These include freebies or minor tweaks, accompanied by banners on websites and social media posts that highlight the benefits or capture the festive spirit. These offerings typically come with (not necessarily all) free data, extended validity, additional perks, cash back coupons, discounts, OTT services, or other benefits, delighting customers with continuous value additions.
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Recent Tariff Revisions
However, in the recent past, private telecom service providers increased their tariffs, a fact acknowledged in the Lok Sabha. It was noted that the tariff hikes by telecom service providers, including Bharti Airtel, Reliance Jio Infocomm, and Vodafone Idea, ranged from 11 percent to 25 percent, indicating that the Government is already aware of the tariff revisions.
On November 27, a question was raised in the Lok Sabha regarding the unilateral tariff increases despite government monitoring and whether there were plans to regulate these changes.
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Role of TRAI and the Forbearance Policy
In response, the Minister of State for Communications clarified that, like many other countries, the Telecom Regulatory Authority of India (TRAI) has adopted a forbearance policy for mobile telecom services. Under this policy, tariffs for telecommunication services are under forbearance, except for specific services such as national roaming, rural fixed-line services, USSD services, mobile number portability charges, and leased circuits.
This means telecom service providers (TSPs) are free to set their tariffs based on market demand and supply in a competitive environment. This flexibility allows operators to adjust pricing according to market conditions.
Government Monitoring Telecom Tariffs
Despite this autonomy, TSPs must adhere to transparency. However, you might wonder: how does the government monitor the tariffs being offered and determine whether providers are increasing their rates? The answer lies with the Ministry of Communications. According to the Ministry, the government monitors all tariffs offered by telecom providers under the requirements of the Telecommunication Tariff Order (TTO). TSPs are required to file their tariffs with TRAI within seven working days of their market launch.
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Festive Offers
For example, Jio recently launched its "Diwali Dhamaka Offers" in 2024 across its range of services—including Jio Fiber (prepaid and postpaid), Jio AirFiber, and Jio Prepaid—featuring extra validity, additional data, and benefits like travel, fashion, food discounts, or coupons, it must report all these plans to TRAI within seven working days of their launch. This allows the regulator to review and ensure compliance. The same applies to Vodafone Idea's Diwali Offers, as well as those from Bharti Airtel or BSNL.
According to the Ministry of Communications, these reported tariffs are then reviewed to ensure compliance with regulatory principles, including transparency, non-predation, and non-discrimination.
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Indian Tariffs Among the Lowest Globally
Furthermore, the Ministry highlighted that despite recent tariff increases, there is still robust competition in the telecom market, with at least four service providers offering competitive plans. It also noted that Indian telecom tariffs remain among the lowest in the world and in India's neighbourhood.
Conclusion
In conclusion, while telecom operators have the freedom to determine their tariffs in a competitive market, they are required to file their plans with TRAI for compliance checks. The government does not interfere in pricing, except to ensure adherence to regulatory principles. This system ensures that the market operates efficiently while keeping customer interests in focus.
