Telecom operators are planning to seek more time from the Telecom Regulatory Authority of India (Trai) for implementing the directive of having at least one pre-paid tariff plan with validity of 30 days, as they need to upgrade their billing software.
In a tariff order issued on January 27, Trai had directed all the telecom operators to offer pre-paid subscribers at least one plan voucher, one special tariff voucher and one combo voucher, which shall be renewable on the same date of every month. Apart from this, operators have to offer at least one plan voucher, one special tariff voucher and one combo voucher having a validity of 30 days. Trai had given 60 days to operators to implement the order, during which the required modifications in their billing systems can be done.
Implementing the directive means that pre-paid subscribers will also be able to avail a post-paid-like billing cycle, where the bill is generated every month, irrespective of the number of days in a month. But telcos feel the directive can’t be implemented in 60 days and therefore plan to seek an extension of a month or two. Trai had passed the order after following a consultation process with the indu-stry and other stakeholders.
Currently, most of the pre-paid tariff packs come with a predefined validity period of 28/56/84 days, but the regulator has received several references and complaints regarding the 28-day validity pack, which is touted as a monthly pack. Customers have highlighted that with 28-day validity pack, which is the most prominent tariff plan, they have to do 13 recharges in a year. If the recharge can be done on a monthly basis, only 12 recharges have to be made in a year.
For post-paid tariffs, the billing cycle works on a monthly basis, irrespective of the number of days in a month. When Trai asked the operators about the feasibility of offering a monthly validity prepaid pack, the telcos expressed their inability to do so. They pointed out that in pre-paid services, there has to be clarity and objectivity in the duration for which the services are to be given and with a ‘month’ having variable number of days, it should not be the basis of charges of prepaid services.
Telcos also highlighted that unlike post-paid services, where a concept of fixed billing cycle on a monthly basis is followed, pre-paid services resume from the date of recharge and follow the validity period of tariff expressed in terms of number of days, rather than a fixed monthly billing period. Even in the case a 30-day tariff offering is mandated, customers will have to recharge more than once in months having 31 days.