Modi government pushes telcos to promote 30-day recharge plans
What's the story
The Indian government is pushing telecom companies to promote their 30-day recharge plans more actively. This comes after Aam Aadmi Party (AAP) MP Raghav Chadha raised concerns over the fact that 'monthly' recharge plans actually last for 28 days, forcing users to recharge their phones 13 times a year. Union Minister of Communications Jyotiraditya Scindia said while the practice is already prevalent, there's room for improvement in consumer awareness.
Regulatory guidelines
TRAI mandates 1-time plan in every category
Scindia said the Telecom Regulatory Authority of India (TRAI) has mandated that every operator's plan bouquet must include a one-time plan, a custom plan, and also a 30-day plan across all categories. This is to ensure that consumers are offered fairer alternatives to the existing 28-day recharge plans. In 2022, TRAI had issued a tariff order mandating all operators to offer at least one 30-day plan in each category of prepaid vouchers: plan vouchers, special tariff vouchers, and combo vouchers.
Proposed changes
Chadha proposed 1-month validity for all recharges
During a Rajya Sabha session, Chadha recommended discontinuing 28-day recharge plans and standardizing 30-day/one-month validity for all monthly recharge plans. He also suggested that incoming calls and text messages should remain active for at least one year after the last recharge, with number deactivation happening after a grace period of three years. Currently, TRAI regulations state that a prepaid mobile connection cannot be deactivated for non-usage for at least 90 days.
Minister's stance
What is forbearance?
Responding to questions about discontinuation of incoming calls after plan expiry, Scindia said he wouldn't comment on tariff issues as the sector is in forbearance. Under this regime, operators have the flexibility to decide pricing and service terms, including when the incoming services are restricted after plan expiry. This gives them leeway in determining how long users can continue receiving calls after their recharge period ends.
Ongoing inquiry
TRAI investigating validity of recharge plans
TRAI is currently investigating the validity period of recharge plans and the issue of incoming calls, after concerns were raised in Parliament. In 2022, the regulator had also directed operators to offer plans renewing on the same date every month, ensuring transparency. While it didn't ban 28-day plans, it aimed to offer consumers with a choice of monthly validity plans for better convenience and value.