Telcos unite to resist regulation of ‘premium’ services

Telecom service providers across the spectrum have united in resisting attempts by the Telecom Regulatory Authority of India to frame new guidelines to make cellphone tariffs more transparent. 

They have asked the regulator not to intervene on tariff, saying this should be left to market forces. They have also opposed a TRAI proposal to have at least one standard tariff plan across all operators.

Service providers also said that the regulator should not intervene in fixing a cap for premium SMSs. ''We are of the view that no further regulations or measures are required to enhance transparency,'' the Cellular Operators Association of India, the lobby representing GSM operators, said in a communication to TRAI on Saturday.

The Association of Unified Telecom Service Providers of India, representing CDMA players and dual technology operators, said, ''The policy of tariff forbearance has worked well for the telecom market in India. It is suggested that regulated tariff should be resorted to neither in case of value-added services or any other product category and no limit should be imposed on any premium rate SMS services.''

Last week, consumer organisations had asked the telecom regulator TRAI to cap the rates of premium SMS and calls. This seems to have triggered the riposte from the service providers, who charge up to Rs10 a minute for premium SMSs and calls. Usually subscribers come to know about the 'premium' billing once they have sent an SMS or made a call.

''TRAI should fix the cap for premium SMSs and calls. Firstly, the rates are not announced by the service providers; and secondly consumers send SMSs or make calls spontaneously on an emotional basis. Therefore it is essential to regulate it,'' said the Telecom Users Group of India.