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Vodafone, Idea told to have one rate for all

Rishi Raj

Posted: 2008-07-14 02:22:50+05:30 IST
Updated: Jul 14, 2008 at 0222 hrs IST

In a pro-consumer move, the Telecom Regulatory Authority of India (Trai) has asked Vodafone Essar and Idea Cellular to remove the “discriminatory provision” in their STD tariff plan of Rs 1.30 per minute and extend it to all subscribers without any conditionality.

According to Trai officials, the two companies had slashed the STD tariff to Rs 1.30 per minute in May after the country’s largest mobile operator, Bharti Airtel, had announced a tariff cut to Rs 1.50 per minute. However, Vodafone and Idea had stated that in their case the tariff would be Rs 1.30 per minute provided subscribers sent them an SMS request to be put under the plan. In case an SMS was not sent the rate of Rs 2.40 per minute would be applicable.

This particular clause did not go down well with Trai, which intervened in the matter. According to Trai, the move was discriminatory as there could be consumers who either did not know how to SMS or were ignorant of such fine prints. Sources said that Trai wrote to the two operators to remove the discriminatory clause and extend the tariff to all subscribers. The two companies wrote back that they would put on hold the cut and appear for a hearing on the matter.

However, after the hearing, Trai has issued directions to them that the discriminatory provision has to be removed. This means the two companies would either have to provide Rs 1.30 per minute tariff to all subscribers without any conditions or revert to the earlier Rs 2.40 per minute tariff.

When contacted, a Vodafone spokesperson said that subsequent to the Trai directions, the company has withdrawn the SMS condition and is working on how to implement the new tariff plan. However, an Idea spokesperson said he would only comment on the matter after ascertaining all facts from Trai.

Bharti’s tariff cut to Rs 1.50 per minute did not have any conditionality so it has passed the regulator’s muster. Mobile tariffs are under forbearance, meaning that operators do not need prior approval for setting tariifs but have to inform Trai of changes within a week of implanting them. If the regulator finds anything objectionable it intervenes at that stage.

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