Trai caps processing fee for prepaid top-up vouchers at 10% of MRP

In a move that will provide relief to pre-paid users recharging with lower denomination top-up vouchers, the Telecom Regulatory Authority of India on Monday said that the processing fee levied on such vouchers should not exceed 10% of maximum retail price of the coupon or R3, whichever is less.

In a move that will provide relief to pre-paid users recharging with lower denomination top-up vouchers, the Telecom Regulatory Authority of India (Trai) on Monday said that the processing fee levied on such vouchers should not exceed 10% of maximum retail price of the coupon or R3, whichever is less.

At present, processing fee charged for top-ups of R20 and above is R3, while for top-ups below R20, it is R2. Processing fee is included in the MRP of a recharge coupon used by prepaid mobile service users. More than 90% of mobile phone users in India are estimated to be prepaid users.

?A nominal fee, not exceeding 10% of the maximum retail price of top-up voucher or R3, whichever is less, shall be levied towards administrative cost or expenses for each top-up voucher,? Trai said in its Telecommunication Tariff (Fifty Third Amendment) Order, 2012.

To reach this conclusion Trai undertook a review through a consultation process and decided to rationalise the structure of the processing fee.

For the ceiling tariff for calls made and SMS sent to participate in contests and competitions and voting, Trai has decided to keep the tariff under forbearance.

This article was first uploaded on October two, twenty twelve, at seven minutes past one in the night.