Voice and Data Plans Not as Per Requirement, Says Experts

The newly introduced voice and SMS tariff plans by India’s leading telecom operators have drawn criticism from experts, who argue that these plans fail to meet the objectives set by the Telecom Regulatory Authority of India (TRAI). The plans were intended to cater to elderly users, feature phone owners, and rural subscribers by offering cost-effective, basic services. However, experts claim that the price differences between the new and existing plans are minimal, providing little benefit to the target audience.  

In response to TRAI’s directive, Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) launched new tariff plans last week. Airtel introduced an annual plan priced at ₹1,849 and an 84-day plan at ₹469, while Jio announced a similar annual plan for ₹1,958 and an 84-day plan for ₹458. Vi offered a 270-day plan for ₹1,460. Despite these efforts, telecom experts remain unconvinced that these plans will effectively serve the intended demographics. 

Limited Impact of Bundling Strategies   

Telecom expert Parag Kar analyzed the new plans in comparison to their closest data-inclusive counterparts and found that they are only marginally cheaper—by 1 to 4 paise per minute. He noted that while this price difference might attract a small segment of users, it is unlikely to drive significant changes in consumer behavior. Similarly, Mahesh Uppal, Director of Com First (India), criticized the plans for benefiting mid-tier consumers rather than low-income groups or the elderly. “These plans are designed to lock customers into longer commitments, offering companies a level of customer retention. However, they are less effective for low-income users who cannot afford long-term plans,” he said. 

Economic Considerations and User Behavior   

Professor V. Sridhar from the International Institute of Information Technology in Bengaluru explained that the lack of significant price reductions should not be surprising, given the already low tariffs in India. He pointed out that bundling services, such as combining voice and data, typically results in better economies of scale. “Despite the minimal price drop, the plans may still appeal to users who rely on secondary SIMs for essential services like voice, SMS, and OTP authentication,” Sridhar said, adding that telcos have little financial incentive to reduce prices further. 

Need for Quality of Service Improvements   

While the new plans may have limited appeal to certain user groups, Sridhar emphasized that pricing adjustments are meaningless without addressing the poor quality of voice services. “Lowering tariffs is futile if users cannot make reliable voice calls due to frequent call drops. TRAI should focus on enforcing strict quality-of-service metrics for both voice and broadband services,” he argued. Sridhar urged TRAI to prioritize improving service quality over tariff interventions, stating that this would have a greater impact on user satisfaction.  

In summary, while the new plans offer some price relief, they fall short of TRAI’s intended objectives and highlight the need for improved telecom infrastructure and service quality.