TSPs accountable for discriminatory MNP specific tariff offers: TRAI

TSPs accountable for discriminatory MNP specific tariff offers: TRAI

Rival TSPs are allegedly luring MNP customers using differential tariff offers.

TRAI

Mumbai: The Telecom Regulatory Authority of India (TRAI) has received complaints lodged by telecom service providers (TSPs) that rival TSPs are offering discriminatory tariff benefits to customers who want to switch telcos via mobile number portability (MNP).

As per the Telecommunication Tariff Order (TTO), 1999, clause 10 on non-discrimination: No service provider shall, in any manner, discriminate between subscribers of the same class and such classification of the subscribers shall not be arbitrary.

Provided that every classification between subscribers shall be based on intelligible eligibility criteria where such criteria shall have a rational nexus to the purpose of the said classification, it added.

In 2011 letter, TRAI had clarified that: “The offering of differential tariffs to the subscribers porting from the network of other service provider is not valid and reasonable classification as the motive behind such classification is apparently to induce churn from the competitors’ network and which is discriminatory and contravenes the provisions of clause 10 of TTO, 1999.”

“While TSPs have generally denied allegations of discriminatory MNP-specific tariff offers, in some cases, they have stated that their channel partners may have given some MNP specific benefits to the customers on their own without the consent and authorization of TSP”.

Channel partners such as distributors, retailers and third-party apps are non-licensed entities that are appointed by TSPs for the purpose of offering telecom services. However, it remains the responsibility of the TSPs to adhere to regulatory provisions and guidelines with respect to tariff offerings.

Considering all aspects and with the objective to ensure transparency, uniformity, and protection to its subscribers, TRAI has directed telecom services to ensure:

1.     Only the tariffs reported to TRAI are offered through their channel partners, distributors, third-party apps etc.

2.     All tariff orders comply with extant TRAI regulations/directions/orders issued in this regard as, where the TSPs name/brand is used for marketing/offering/selling products and services, the responsibility of ensuring compliance of TRAI’s regulatory guidelines/provisions shall remain with TSP.

At the end of June, TRAI reported that telcos Reliance Jio and Bharti Airtel had added 5.4 million and 3.8 million mobile subscribers whereas Vodafone Idea has lost 4.2 million mobile subscribers.