News APP

NewsApp (Free)

Read news as it happens
Download NewsApp
Rediff.com  » Business » 'Lifetime' validity not for life

'Lifetime' validity not for life

By Joji Thomas Philip in New Delhi
February 06, 2006 09:13 IST
Get Rediff News in your Inbox:

If you thought lifetime validity for your pre-paid mobile connection is valid for the rest of your life, think again. The plans are only valid for as long as a telecom services operator's licence is.

It has been found that licences of most operators will remain valid for not more than 15-odd years. This is because the first set of telecom licences was issued in 1994-95 for a period of 20 years.

All about 'incoming free for life' plans

The Telecom Regulatory Authority of India has been able to unearth this during discussions with operators on the viability and sustainability of "lifetime validity" offers made by them.

What is more, tariff plans for "lifetime validity" can be changed by service providers. The operators - both GSM and CDMA - have informed Trai that their tariff plans have been designed and structured keeping in view the present licencing, regulatory and interconnect user charge regimes.

If any of this were to change in the future, the tariff packages will be altered. The operators have also pointed out that under existing laws, they are only required to ensure that tariffs for lifetime validity plans remain unchanged only for a period of six months from the time a subscriber buys such a plan.

Operators have also failed to give specific answers to Trai queries on measures they will take to protect consumer interest, the nature of penalty for violations by service providers and whether call charges for these schemes should be monitored.

Instead, operators have said that there are many variables in the market place that may force them to constantly tailor tariffs to attract new customers.

"Trai, having prescribed forbearance for cellular tariffs, should not seek to withdraw this flexibility or indulge in micro-management," they added.

To the regulator's queries on the sustainability of these offers, operators have said, "As these plans have not been in operation for a long period of time, it is difficult to conclude on the validity and sustainability of these plans. We believe that at least six months are required to come to a reasonable conclusion on the viability of any tariff plan."
Get Rediff News in your Inbox:
Joji Thomas Philip in New Delhi
Source: source
 

Moneywiz Live!