With subscribers having had a string of lifetime offers thrown at them recently by service providers, the Telecom Regulatory Authority of India (TRAI) has rightfully stepped-in and issued much-needed regulations on this slew of schemes.
TRAI has given an order that bars telecom operators from charging tariff on lifetime prepaid offers as long as they remain in business. TRAI's directive is intended to protect the interests of subscribers who make an upfront payment in lieu of certain promised features including validity, as also to bring more clarity to the concept of lifetime validity.
Issuing the order, TRAI has further pointed out that in case of tariff plans offered or marketed as having lifetime or unlimited validity in lieu of an upfront payment, subscribers of such plans will continue to get service as long as the service provider is permitted to provide such telecom service under the existing or renewed license.
Service providers are required to inform subscribers of the month and year of the expiry of the current license.
TRAI has prohibited operators from hiking tariffs for any service specified in the lifetime tariff plans, during the entire lifelong validity period.
Furthermore in case of tariff plans other than plans with lifetime validity that have a component of upfront payment, the service providers are not allowed to hike tariffs during the promised validity period of such plans.
Like in the case of lifetime validity plans, subscribers of other tariff plans will continue to get service during the entire promised validity period.
Meanwhile operators have conveyed that if regulatory or policy changes do not make the lifetime plan viable, they retain the freedom to withdraw it at any point of time.
TRAIs pushback to LifeTime operators
Tuesday, April 04, 2006 at 10:13 PM Posted by PA Jones
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