- Telecom tariff hikes have made mobile plans costlier for Indian consumers.
- Feature phone users demand cheaper plans with basic calling and SMS benefits.
- Government clarifies it won’t intervene in telecom operators’ tariff decisions.
The Indian Telecom sector is witnessing significant changes, with tariff hikes making Mobile plans more expensive for users. Many consumers, especially those relying on non-smartphones, feel left out as even the most basic service plans cost nearly ₹200. While these plans typically include unlimited voice calls and limited data, they remain unaffordable for many. The Indian government has clarified that it does not plan to mandate special plans for feature phone users, leaving the matter in the hands of telecom operators.
In a recent statement, Jyotiraditya Scindia, Minister of Communications, emphasized that the government would not impose regulations on telecom tariffs. This decision aligns with the approach of letting the Telecom Regulatory Authority of India (TRAI) handle tariff-related matters. However, this lack of intervention has raised concerns among feature phone users seeking more affordable options for basic connectivity needs.
The recent tariff hikes have primarily been driven by telecom operators’ efforts to boost their average revenue per user (ARPU). Bharti Airtel and Reliance Jio, two major players in the industry, have managed to maintain profitability and healthy cashflows, despite the price increases. On the other hand, Vodafone Idea (Vi) and Bharat Sanchar Nigam Limited (BSNL) continue to face financial challenges, making affordable plans a distant reality for many consumers.
Plan Options for Feature Phone Users
The tariff hike has left feature phone users searching for mobile plans that cater to their basic needs. Here’s how the scenario stands:
- Most telecom operators offer basic service validity plans starting at Rs 200, which include unlimited voice calls and minimal data.
- Reliance Jio has a JioPhone-exclusive plan that is relatively affordable, but it does not cater to Airtel and Vi customers.
- The rising cost of telecom services continues to burden users who depend solely on voice and SMS services.
Impact of Telecom Tariff Hikes
The ongoing tariff hikes are aimed at improving telecom operators’ profitability but come at a cost for consumers. While higher ARPU benefits operators, it creates financial strain for users with limited budgets. The absence of affordable plans for non-smartphone users highlights the industry’s focus on data-heavy plans catering to smartphone users.
Telecom tariff hikes have reshaped the affordability of mobile plans, leaving feature phone users with limited choices. The government’s decision not to mandate special plans for these users emphasizes the role of TRAI and telecom operators in determining the course of action. Moving forward, a balance between profitability and inclusivity will be essential for the telecom sector’s long-term growth.
FAQ
Why are mobile plans becoming expensive?
Telecom operators have increased tariffs to improve their average revenue per user (ARPU).
Are there affordable plans for feature phone users?
While Jio offers cheaper options for JioPhone users, similar plans are unavailable for Airtel and Vi customers.
Will the government introduce special plans for non-smartphone users?
The government has clarified that it will not mandate special plans for feature phone users.
