Misleading lifetime plans? Telcos to clarify

Telecom operators including Bharti Airtel and Vodafone have agreed to submit their undertakings before fair trade practices watchdog MRTPC over misleading life-time prepaid services scheme.

During a hearing before the Monopolies and Restrictive Trade Practices Commission (MRTPC) last month Bharti Airtel, Vodafone Essar, Reliance Communications, Tata Teleservices, and government-run BSNL and MTNL agreed to submit the undertaking.

MRTPC was hearing a case filed by its investigative arm DGIR alleging the use of deceptive advertisements by operators to promote their life-time prepaid services.

The life-time prepaid scheme holds good till the time the license of a telecom operator is valid and not the life time of the customer. The Commission had granted the telcos three weeks to file the undertaking under section 36 D (2) of the MRTPC ACT.

Under Section 36 D (2), the MRTPC instead of passing any order, permits the concerned people to carry on their business if it is assured that the trade is no longer prejudicial to public interest.

Earlier this year, taking a suo motto cognisance, the Commission had directed the Director General of Investigation and Registration (DGIR) to look into the advertisements published by telcos promoting life-long free incoming calling cards.

In its report, DGIR found the advertisements deceptive and recommended action against the telcos. The matter will come up for the next hearing in the second week of January.