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Shield consumers from tariff hike for 1 yr: Trai
 
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July 24, 2008 01:50 IST

Consumers may now be insulated from any tariff increase for a period of 12 months if the recommendations made in a consultation paper of the Telecom Regulatory Authority of India (Trai) are accepted. At the moment, consumers have a protection against any hike for just six months. 

In a short consultation paper on certain amendments to the Telecommunications Tariff Order of 1999, issued by the regulator today, Trai has proposed that the minimum protection period available to a telephone customer from hike in any segment of the tariff should be increased to 12 months from the consumer's date of enrollment in a tariff plan. 

The authority, however, pointed out that subscribers in longer periods of validity, like the lifetime subscribers, will continue to be protected for the lifetime or any such long period of validity. 

Trai has also proposed a cap of Rs 2 for the charges levied by service providers towards administrative costs for recharges exclusively meant for provision of talk-time value. At present, there is no fixed upper limit on this charge that varies for each operator.  

Consumers could now also have the advantage of not paying a migration fee to enter into a new lifetime validity or unlimited validity plan with lower entry fee as compared with his or her existing lifetime validity plan or unlimited validity plan.  

Trai has proposed that the service provider shall not levy any upfront payment or recurring charges or fees for allowing such migration. 

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