Government Policies And Regulatory Framework Have Resulted In India Having One Of The Lowest Tariffs

Government policies and regulatory framework notified by the Telecom Regulatory Authority of India (TRAI) have resulted in India having one of the lowest tariffs for subscribers of mobile services, according to an official statement from the Ministry of Communications dated March 25, 2026.

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Competition and Policy Drive Low Tariffs

TRAI, under the provisions of the Telecom Regulatory Authority of India Act, 1997, is empowered to notify telecom service rates. As per the existing tariff framework, tariffs for mobile and data services remain under forbearance, allowing service providers the flexibility to design and offer plans based on market dynamics and commercial considerations. However, certain services—including national roaming, rural fixed-line services, mobile number portability, and leased circuits—continue to be regulated, according to the Ministry.

“Subject to compliance with extant regulatory provisions, service providers are free to design and offer tariffs based on their understanding of the market situation and other commercial considerations,” the government highlighted.

The government noted that competition exists in the market, and that its policies, along with the regulatory framework notified by TRAI, have resulted in India having some of the lowest tariffs for mobile service subscribers.

Strict QoS Monitoring and Reporting Framework

TRAI is also mandated to ensure quality of service (QoS) standards for telecom providers. To safeguard consumer interests, the regulator continuously monitors service performance against prescribed benchmarks through periodic reports submitted by operators. While reports are filed quarterly for each Licensed Service Area, mobile service providers are required to submit performance data on a monthly basis.

Penalties for Service Quality Violations

In cases of non-compliance with QoS benchmarks, TRAI seeks explanations from the concerned service providers and may impose financial disincentives after due consideration. These penalties, as outlined in the QoS regulations, can go up to Rs 1 lakh for the first violation, Rs 2 lakh for the second consecutive breach, and Rs 3 lakh for each subsequent violation.