No tariff hikes in lifetime schemes: TRAI

Keeping the consumer's interest in mind, telecom regulator TRAI Wednesday ordered that telecom companies promising schemes of lifetime validity in mobile connectivity cannot increase tariffs in such schemes during the entire period.

"Hike in tariff is prohibited for any tariff item specified in the lifetime tariff plans during the entire lifelong validity period. In the case of tariff plans other than plans with lifetime validity which have a component of upfront payment, service providers are not allowed to hike tariffs during the promised validity period of such plans", TRAI said in its order.

TRAI had asked the operators who had offered such schemes on what would happen if there was a change in traffic patterns and Interconnect Usage Charge regime and how the consumers would be protected against a hike in tariff.

The Cellular Operator Association of India had urged the regulator to allow operators to hike tariffs in an effort to meet any revision in IUC regime. The regulator has now struck down this request and has put to rest one of the most crucial issues in these plans.

"With a view to protecting the interests of subscribers who make an upfront payment in lieu of certain promised features, including the validity, and also to bring more clarity to the concept of lifetime validity, the Authority considered it necessary to issue orders in this regard.

The order said that in case of tariff plans offered or marketed as having lifetime or unlimited validity in lieu of an upfront payment, subscribers to such plans will continue to get service as long as the service provider is permitted to do so under the current licence or renewed licence.

The service providers who offer such plans will inform the subscribers of the month and year of the expiry of current licence.

And in case of tariff plans other than lifetime validity schemes, subscribers to them will also continue to get service during the entire promised validity period.

The subscriber will have the right to choose any tariff plan at any point of time, TRAI said.