TRAI Pulls Up Reliance Jio Over Tariff Practices, Sets April 14 Deadline for Compliance: Reports

Device-Specific Tariffs Under Scrutiny

TRAI also reportedly flagged the company’s device-specific tariffs for JioBharat and JioPhone—low-cost 4G feature phones—as a “violation of the principle of non-discrimination.” The regulator emphasised that restricting tariff benefits to specific devices limits consumer choice and effectively binds users to particular offerings, undermining mobile number portability.

In its communication to Jio, TRAI reportedly noted that the non-offering of special tariff plans across all platforms violates transparency requirements outlined in its earlier directions issued on September 18, 2020, which call on operators to publish tariff plans on all platforms for users.

According to TRAI’s letter, Jio told the regulator in November last year that the 2020 directions were “issued by the Authority strictly on tariff publication and not on how and where the tariffs should be sold,” the reports highlighted.

On JioBharat tariff plans, Jio reportedly told TRAI that these plans are not available to any other class of Jio users using other devices and thus, this distinction is not “arbitrary” as it is based on the “intelligible” criteria.

Rejecting Jio’s arguments, TRAI asserted that limited access to specific plans forces consumers to visit different channels for different plans, which is against the principles of the Telecommunication Tariff Order, 1999. The regulator also dismissed the company’s justification regarding first-time recharge limitations, stating that such constraints apply only to initial SIM acquisition.

Further, TRAI reportedly observed that device-specific tariffs are not being adequately reported in the operator’s monthly submissions, and termed such offerings disadvantageous to consumers. It added that restricting plans to specific devices could effectively lock users into a network for the lifetime of the device, reducing flexibility.

Regulatory Risks and Potential Penalties

Under the TRAI Act, 1997, failure to comply with regulatory directions can attract penalties of up to Rs 1 lakh for the first offence and Rs 2 lakh for subsequent violations. Continued non-compliance may invite additional fines.