Lok Sabha Question No. 5315 (UNSTARRED), answered on 2018-03-28
Subject: Illegal Offers by Telecom Service Providers
Ministry: COMMUNICATIONS
Asked by: Y. S. AVINASH REDDY

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO.5315 TO BE ANSWERED ON 28 TH     MARCH, 2018

## ILLEGAL OFFERS BY TELECOM SERVICE PROVIDERS

5315. SHRI Y.S. AVINASH REDDY:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  Telecom  Service  Providers  (TSPs)  are  luring  the  customers  by adopting  illegal  offers  which  restrict  the  customers  from  shifting  from  one  TSP  to another;
- (b) if so, the details thereof;
- (c) whether  the  Telecom  Regulatory  Authority  of  India  (TRAI)  has  taken  note  of aforementioned malpractices by TSPs and if so, the details thereof and the response of the TRAI thereto; and
- (d) the action taken/being taken by the Government against such erring TSPs?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a) to (d) As  per  the  existing  tariff  framework,  tariff  for  telecommunication  access service  is  under  forbearance  except  for  National  Roaming  and  Rural  Fixed  Line Services.  The service providers have the flexibility to decide various tariff components for different service areas of their operation.

Tariffs  are  offered  by  service  providers  taking  into  account  several  factors including  inputs  costs,  level  of  competition  and  other  commercial  considerations. Telecom  Service  Providers  (TSPs)  have  flexibility  to  design  their  products  to  suit consumer demand.TSPs have such plans on offer which  provide  subscribers  a  wide choice  of  telecom  products  as  per  their  need.    Offering  different  plans  with  various combinations  of  tariff  components  by  a  telecom  company  is  not  prohibited  under present regulatory norms prescribed by Telecom Regulatory Authority of India (TRAI), provided they are consistent with regulatory guidelines issued from time to time.

TRAI has reiterated the regulatory principles of non-predatory, non-discrimination and  transparency  in  tariff  offers.    As  such,  the  transparency  in  tariff  offers  will  be objectively observed by the telecom service providers vis-à-vis the guiding principles of transparency.   Similarly, TRAI will also examine the tariffs of telecom service providers on  the  touchstone  of  accessibility,  accuracy,  comparability  and  completeness.    It  will also  take  in  account  whether  tariffs  are  distinct  and  identifiable,  explicit  and  nonmisleading,  simple  and  unambiguous  etc.    This  would  ensure  transparent  offering  of telecom tariffs to consumers.

Further,  the  definition  on  Non-discrimination  provides  a  clear  benchmark  to telecom service providers to bring tariff offers to consumers on non-discriminatory basis. Aforementioned regulatory principles provide greater clarity for enabling telecom service providers for designing their tariff in more innovative manner and also smoothly comply with the regulatory principles.

Further  TRAI  has  written  to  operators  to  observe  these  principles  while  offering Tariffs to customers.  They have been also asked to report all retail tariffs to TRAI and publish them transparently on their websites.

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