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Mobile oprs asked for disclosure: TRAI

TRAI has asked the mobile operators offering lifetime connectivity plans to disclose 'risk factors'.

india Updated: Jun 01, 2006 12:02 IST

TRAI has asked the mobile operators offering lifetime connectivity plans to disclose 'risk factors', like change in tariff plans and their remaining licence period duration, in their announcement.

This is aimed at making the operators disclose key issues as well as reveal to the public any hidden cost in the announcement, so that the consumers are informed before choosing any tariff plan.

"We have told the operators that tariff announcement have to be transparent.. The in-between, unspoken lines should be notified actors' as is done in case of the prospectus filed by companies when they go for public issues.. In case of Lifetime plans by mobile operators, we have conveyed it to them that the lifetime of the licensee should be mentioned in the plans so also the fact that tariffs are subject to change necessiated by the change in Interconnet Usage Regime," TRAI Chairman Nripendra Misra said.

Misra said the operators have been asked to clarify the entire Lifetime Plan before the consumers like what the operator in question's lifetime of the licence period and how much that period have passed and added operators are already doing the same in that direction.

While announcing lifetime plans, a few months ago, mobile operators went gung ho about claiming superiority of their plans over others, which offered free incoming for lifetime with recharging every six months. Before that, incoming was free, but not for lifetime.

Same was the case with tariffs, which the operators claimed to be same throughout the life time plan. But on enquiry, TRAI found out that operators are referring to a change in tariff plans in case of a change in the IUC regime (Interconnect Usage Regime) to save it from being unsustainable.

"No tariff plans shall be offered, presented or marketed or advertised in a manner that is likely to mislead subscribers," TRAI said in one of its latest circulars to the companies.

First Published: Jun 01, 2006 12:02 IST