Telecommunication Tariff (Sixty Fifth Amendment) Order, 2020

TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART III SECTION 4

TELECOM REGULATORY AUTHORITY OF INDIA

NOTIFICATION

New Delhi, the 3rd June 2020

No. 301-03/2020-F&EA — In exercise of the powers conferred upon it under sub-section (2) of section 11, read with sub-clause (i) of clause (b) of sub-section (1) of the said section, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), the Telecom Regulatory Authority of India hereby makes the following Order further to amend the Telecommunication Tariff Order, 1999, namely: -

THE TELECOMMUNICATION TARIFF (SIXTY FIFTH AMENDMENT) ORDER, 2020 (No. 01 of 2020)

1. (1) This Order may be called the Telecommunication Tariff (Sixty Fifth Amendment) Order, 2020. (2) It shall come into force from the date of its publication in the Official Gazette.

2. In clause 3 of the Telecommunication Tariff Order, 1999 (hereinafter referred to as the principal tariff order), for the word and figures “Schedule I to XIII”, the word and figures “Schedule I to XII” shall be substituted.

3. In the principal tariff order, Schedule XIII and entries thereunder shall be deleted.

(S. K Mishra) Pr. Advisor (F&EA)

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Note.1. – The Telecommunication Tariff Order, 1999 was published in the Gazette of India, Extraordinary, Part III, Section 4 under notification No.99/3 dated 9th March, 1999, and subsequently amended as given below:-

Note 2. – The Explanatory Memorandum explains the reason for Telecommunication Tariff (Sixty Fifth Amendment) Order, 2020.

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EXPLANATORY MEMORANDUM

A. Introduction and Background

1. The Telecom Regulatory Authority of India had issued the Telecom Commercial Communications Customer Preference Regulation, 2010 (6 of 2010) dated the 1st December, 2010 to provide an effective mechanism for curbing unsolicited commercial communications (UCC). All the provisions of regulations came into force from 27th September 2011.

2. Further, with the same objective of curbing UCC, the Telecom Regulatory Authority of India had issued the Telecommunication Tariff (54th Amendment) Order dated 5th November 2012 (54th Amendment Order). At the time of issuing the 54th Amendment Order, the Authority observed that subscribers undertaking telemarketing activities using normal mobile connections use discounted SMS packages available in the market, for sending bulk promotional SMSs. Based on the public consultative process, the principal tariff order was amended mandating the service providers not to allow sending of more than one hundred SMS per day per SIM at concessional rate. Further, it was provided that subscribers can send SMS beyond one hundred SMS per day per SIM, but all such SMSs will be charged at the rate of not less than fifty paisa per SMS. The Authority considered that notifying a tariff of minimum of fifty paisa per SMS for SMS exceeding 100 SMS per SIM per day as one of the several measures initiated to effectively protect the telecom subscribers from the menace of UCC.

3. In 2017, the Authority noted that despite various measures taken to curb UCC under the framework of the Telecom Commercial Communications Customer Preference Regulation, 2010 (TCCCPR 2010) and other Directions issued on the issue, UCC complaints were on a rise and the problem was not fully under control. To address various issues and concerns, Consultation Paper on UCC was issued on the 14th of September 2017. Pursuant to the consultative process, the Authority repealed the TCCCPR 2010 and introduced the Telecom Commercial Communications Customer Preference Regulations, 2018 (6 of 2018) dated the 19th July, 2018 (TCCCPR, 2018). The new regulatory framework prescribed under the TCCCPR 2018 is technology driven and prescribes technological solutions to detect the UCC such as advanced signature solutions, UCC detect system etc.

4. It is pertinent to keep in mind that the TRAI has moved over the years, from a stage of “fixation of tariff rates” to stage of “forbearance with prior Approval stage” and finally to a stage of “forbearance regime with post-facto reporting obligation” with regulatory oversight. Accordingly, extant policy stance of Tariff regulation gives the TSPs the requisite freedom to design tariff according to their best commercial interest in the prevailing market conditions. This has led to variety of innovative tariffs in the market furthering the objective of provision of telecom services at reasonable and affordable rates to Consumers.

5. Considering the comprehensiveness of the regulatory framework prescribed in the TCCCPR 2018, now there may not be any need of restricting the number of SMSs allowed to be offered on concessional rate or for regulating the tariff of SMSs for protecting the telecom subscribers from the menace of UCC. Further, the move would be consistent with the general TRAI regulatory approach of forbearance in relation to determination of tariffs.

6. Accordingly, a Draft Telecommunication Tariff (65th Amendment) Order, proposing to delete Schedule XIII to the principal tariff order, thereby implying the move from regulating tariffs for more than 100 SMSs per SIM per day to the state of forbearance in matters of determination of tariffs for SMSs, was issued on 18th February, 2020. The Draft Telecommunication Tariff (65th Amendment) Order was placed in public domain on TRAI’s website. Stakeholders were invited to submit written comments by 3rd March, 2020 and counter-comments by 17th March, 2020. The comments and the counter-comments received from the stakeholders were also placed on TRAI’s website.

7. Considering the developments arising from spread of Covid-19 pandemic and consequent preventive measures required by the Government of India, including, inter alia, prohibition of gatherings and adherence to social distancing guidelines, the TRAI conducted an online Open House Discussion (OHD) for the stakeholders on 6th May, 2020 and gave them one more opportunity to not only present their views verbally but also permitted them to submit any supplementary information in writing. The contents of the Draft Telecommunication Tariff (65th Amendment) Order and the views of the stakeholders thereupon were deliberated by the Authority. A brief analysis of the key issues is noted in succeeding paragraphs.