Good News 2025: TRAI issue new rules for Recharge Plan

TRAI Mandates Voice and SMS-Only Tariff Packs for Price-Conscious Consumers

Do you Remember Rs. 10, Rs. 20, Rs. 50 Recharge vouchers ? Do you know someone who use feature phone but still have to pay for internet data Recharge plans? Then this news is for you!

What’s the News?

In a move aimed at benefiting price-sensitive mobile users, the Telecom Regulatory Authority of India (TRAI) has mandated telecom operators to offer voice and SMS-only tariff packs. This initiative is expected to cater to approximately 150 million users, including those still using 2G networks, dual SIM owners, the elderly, and rural residents.

Private telecom operators have expressed concerns over the mandate, arguing that it could slow the migration of users to 4G and 5G networks, potentially impacting Average Revenue Per User (ARPU) growth. However, TRAI believes this step will address the needs of economically weaker sections and ensure affordable connectivity for all.

Key takeaways

• New Recharge plans exclusively for voice calls and SMS with no compulsion to buy internet data
• It also extends the validity of special recharge coupons from the current cap of 90 days to a maximum of 365 days.
• Opposition from Telcos: Private telecom operators have raised concerns, stating the move may hinder the transition to 4G and 5G technologies.
• ARPU Impact: The mandate could slow down Average Revenue Per User (ARPU) growth for telecom companies.
• Affordable Connectivity: TRAI’s initiative focuses on ensuring affordable communication services for economically disadvantaged groups.

Mandate

The mandate comes as a part of the Telecom Consumer Protection (12th amendment ) regulations, 2024 and telecommunications tariff (17th amendment) order 2024.

It will come into effect after 30 days of notification, that is on 23 January 2025.

Why this change?

• According to TRAI, data from telecom operators revealed that around 150 million subscribers in India still rely on feature phones, underscoring the need for non-data-specific recharge options.

• The regulator felt that mandating voice and SMS-only STVs would provide an option to subscribers who do not require data.

• “…the service provider shall offer at least one Special Tariff Voucher exclusively for Voice and SMS with validity period not exceeding three hundred and sixty-five days,” the Telecom Regulatory Authority of India (Trai) said.

Who will be benefited ?

• 150 million 2G users
• dual SIM Users
• Elderly individuals
• Rural Residents

Opposition From Telecom

Trai, on its part, has mandated Telcom to come out with such tariff packs, despite opposition from private carriers who said there is no need for such packs as data has become the central element to all modern communications.

But state-run BSNL, which doesn’t even have a pan-India 4G operation, has supported introduction of voice and SMS-only packs.

Earlier, the telecom companies had told Trai that the current tariff plans have been designed to cater to the needs of all shades of users, which is why, there was no need to introduce voice or SMS-only pack.

Jio, Airtel and Vodafone Idea (Vi) have said that data had become the central element to modern communications.

Unlimited data and voice allowance in bundled offerings have in fact caused exponential rise in usage against the pay-as- you-go model which existed earlier.

But as per Trai, data collected from various telcos revealed that still a significant segment, about 150 million subscribers, continued to rely on feature phones for communications.

TRAI

“This indicates an ongoing demand for voice and SMS-only plans, as these users primarily require basic telecommunication services viz. only voice and SMS,” it added.

There are international practices, like in Bangladesh, US and Pakistan, wherein such packs are offered, Trai added.

While TRAI’s initiative prioritizes consumer choice, it runs counter to the aggressive push by leading telecom players like Reliance Jio and Bharti Airtel to migrate users from 2G to 4G or even 5G.

Average Revenue Per User (ARPU)

These companies are focusing on increasing their Average Revenue Per User (ARPU) through bundled plans that include unlimited data and voice services.

Reliance Jio had earlier called 2G technology as a roadblock to India’s digital growth.

Citi Research estimates Airtel’s ARPU rising to Rs235/270/305 over FY25/26/27 (vs Rs 209 in Q4FY24) on the back of the latest tariff revisions.

Goldman Sachs estimates Jio’s tariff hike will translate into a 17% ARPU increase.

Flexible Recharge Plans

TRAI also introduced more flexibility in recharge values.

Telecom operators can now issue recharge vouchers of any denomination, while still being required to provide a minimum recharge option of Rs 10.

For millions of Indians, this move by TRAI brings welcome relief, ensuring affordable and practical options for mobile connectivity.

However, for the telecom giants, the challenge lies in balancing consumer demands for flexibility with their revenue goals in a data-driven market.

New Recharge Plans after 23 January 2025 are introduced by Jio, airtel, Vi, And BSNL

Comment your thoughts on it, let us know how you see this move by TRAI.

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