India’s leading telecom companies—Airtel, Jio, and Vi (Vodafone-Idea)—recently increased the prices of their recharge plans, leading to a rise of up to 25% in the costs for consumers.
Now, reports suggest that telecom companies may once again hike their recharge plan prices. The primary reason behind this potential increase is the new TRAI (Telecom Regulatory Authority of India) policy, which focuses on curbing spam calls and messages.
What is TRAI’s new policy?
TRAI has directed the Department of Telecommunications (DoT) to implement stricter regulations to prevent spam calls and messages from October 1, 2024. Key aspects of this policy include:
- Telecom companies that fail to curb spam calls and messages may face hefty fines.
- TRAI has suggested that if companies do not comply with the regulations, DoT can seize their bank guarantees.
- Additionally, TRAI has the authority to cancel telecom licenses if companies repeatedly violate the rules.
Possible Impact
If telecom companies face penalties, they may pass this financial burden onto their customers by increasing the prices of recharge plans again. The companies are already focused on raising their ARPU (Average Revenue Per User) to cover losses and invest in new technologies.
Historically, whenever telecom companies have faced penalties or additional costs, they have transferred these expenses to consumers. If they incur fines due to non-compliance with TRAI’s new policy, there’s a strong chance that customers will face more expensive recharge plans in the near future.
