TRAI mandates non-data recharge plans for voice calls and SMS

Mobile service providers, including Jio, Airtel, and Vi, will now issue separate plans for voice calls and SMS for customers not using data.

In a bid to make mobile services more inclusive for Tier-3 cities and non-smartphone users, the Telecom Regulatory Authority of India has announced two key amendments to the Telecommunications Tariff Order, 1999, and Telecom Consumers Protection Regulations, 2012.

The amendments also include the extension of the validity of special recharge coupons from 90 days to up to 365 days.

"...the service provider shall offer at least one Special Tariff Voucher exclusively for Voice and SMS with validity period not exceeding three hundred and sixty-five days," TRAI said in an official statement on Monday evening.

In its notes explaining the rationale behind the seventeenth and twelfth amendments, TRAI highlighted feedback from senior citizens and families with home broadband who expressed no need for mobile plans bundled with data. TRAI issued a consultation paper in July earlier this year with an aim to ensure users receive better value for their money.

"It is also observed that mandating Voice and SMS only STV will provide an option to subscribers who do not require data, and this in any way will not reverse the government initiative of data inclusion as service providers are at liberty to offer bundled offers and data only vouchers," TRAI added.

An STV (Special Tariff Voucher) changes the cost of your calls, SMS, or data for a specific period without adding money to your account, and a CV (Combo Voucher) changes your plan while also adding money to your prepaid balance. You can see these options on your phone when you go to recharge and choose between different vouchers.

The extended validity from 90 to 365 days applies to both STVs for voice, SMS, and Combo vouchers, providing users with longer-term options.

TRAI’s decision to enhance consumer choice comes at a critical time when most homes and workplaces are equipped with in-built Wi-Fi, posing a potential threat to telecom operators' recently gaining Average Revenue Per User (ARPU).

The move is expected to benefit around 150 million 2G users, including those with secondary SIMs used exclusively for voice calls and SMS, and those consumers who wish to pay only for their picked services. Current STVs and CVs remain expensive propositions for 2G users.

These amendments, however, could have a significant impact on private telecom players, as most are focused on growing their 4G and 5G user base, with only Airtel and Vodafone Idea still widely offering 2G networks. Leading players like Reliance Jio and Bharti Airtel are actively working on this 2G to 4G-5G transition, to boost ARPU through bundled plans that include data, calls, SMS, and OTT benefits.

Furthermore, operators have been mandated to at least offer one recharge option priced at ₹10. Previously, operators could issue top-up vouchers only in denominations of ₹10 and its multiples. TRAI has also recommended scrapping the restriction of reserving ₹210 and its multiples exclusively for top-up vouchers.

The press release did not specify when these rules would take effect, but these are expected to be implemented, either immediately or from the beginning of the new year.