Unethical business practices by telecom service providers in life time validity plans subscribed by prepaid category of mobile subscribers as analysed under RTI Act 2005

Unethical business practices by telecom service providers in life time validity plans subscribed by prepaid category of mobile subscribers-

An article as titled above was brought out on 28/12/2018 in this blog indicating unethical business practices of the Telecom Service Providers on their prepaid and postpaid telecom connections. The link to the article is:

https://skvirmani-jagograhak.blogspot.com/2018/12/unethical-business-practices-by-telecom.html

The telecom service providers had launched a scheme “life time validity” plans for mobile subscribers wherein the mobile users were being offered free incoming calls for which no recharge for its validity was required against one time charge. It was ranging from various amounts varying from company to company, the most prominent being Rs. 999/-. These plans were announced by telecom companies more than a decade back. The subscribers were required to recharge with talk time value recharge vouchers if the subscribers wish to use mobile for outgoing calls. While some companies like MTNL had a condition in the post paid category to use the connection for a minimum of Rs. 100/- in three months period and if the value of the consumption was less than Rs. 100/- in a quarter, the left over amount was being unused out of Rs. 100/- and was being paid by the subscribers accordingly.  Many operators did not have any of such conditions.

      However, of late it has come to the notice that the telecom companies have started charging Rs. 28/- to Rs. 35/- per month from the prepaid categories having “life time validity plans” despite the rest of licence period which are getting expired as late as in 2033 or so. This recharge is for keeping validity of the mobile connection else the connection gets deactivated. For talk time, the subscribers of such category are required to recharge with talk time recharge vouchers. Even the month has been defined by these companies as of 28 days.  

The matter was taken up under RTI Act 2005 with Telecom Regulatory Authority of India (TRAI) to find out as to whether the Authority is aware of such practices as well as to know whether the Authority has amended any of its regulations governing tariff plans and their validity and the current Regulatory Framework thereof.  The response of the TRAI is as quoted below:

"Tariff for mobile services is under forbearance except for national roaming and the service providers have the flexibility to decide various components of tariff including the validity and other terms and conditions of services. However, the Telecommunication Tariff (43^rd Amendment) Order 2006 dated 1.09.2008 issued by TRAI, inter-alia, provides that tariff plan once offered by an Access Provider shall be available to a subscriber for a minimum period of Six Month from the date of enrolment of the subscriber to that tariff plan. Further, any tariff plan presented, marketed or offered as valid for any prescribed period exceeding six months or having lifetime or unlimited validity in lieu of an upfront payment shall continue to be available to the subscriber for the duration of the period as prescribed in the plan and in the case of lifetime or unlimited validity plans, as long as the Service Provider is permitted to provide such telecom service under the current license or renewed license. In the case of plan with lifetime validity or unlimited validity, the service provider shall also inform the subscribers of the month and year of expiry of his current license.

Further, Telecommunication Tariff (48^th Amendment) Order, 2008 inter-alia, provided that if the terms and conditions of any tariff plan with lifetime validity or unlimited validity include any condition or stipulation which requires any subscriber to recharge for any specified minimum amount within specified time period or intervals during such validity so as to keep the said tariff plan valid, such specified time period or interval, shall, in no case be less than six month.

Copies of above tariff orders are available on TRAI website www.trai.gov.in"

As can be seen from the response of TRAI, the telecom companies cannot change the tariff plans during its validity. Insisting subscribers to recharge the connection for Rs. 28/- or Rs. 35/- every month in the life time validity plans is thus illegal. The consumers facing such issues may take up their issue under legal remedies. However, before taking up as legal remedies, the subscribers are advised to take up the issue with their service providers at the first instance.