Telecom Lead India: TDSAT’s decision to dismiss telecom operators’ plea on removing TRAI’s mobile VAS norms may impact non-voice revenues of BSNL, Airtel, Idea, Vodafone, Reliance Communications, Aircel and Tata Teleservices.
On Friday, TDSAT has dismissed mobile operators’ plea against TRAI regulations that had laid down the procedures for providing Value-Added-Services (VAS) to their customers.
The tribunal has given three months’ time to Indian telecom operators – BSNL, Bharti Airtel, Idea Cellular, Vodafone, Reliance Communications and Tata Teleservices — to implement the directions on VAS issued by TRAI on July 4, 2011.
TRAI will not take any action against mobile operators till that time.
The dismissal of the plea has the potential to impact the VAS revenue of these operators. At present, VAS revenue of leading telecom mobile service providers is around 10 percent of their total revenue.
In September, GSM and CDMA operators along with their associations approached TDSAT against the regulations of TRAI.
As per the 4th July regulation, telecom operators need to take confirmation from their customers through SMS or e-mail or fax or in writing within 24 hours of activation of the VAS.
As per the new norms, the mobile operators can charge only after confirmation is received from their customer and if not it shall be discontinued.
Every mobile service provider shall, at least three days before the due date of renewal of a subscribed value added service, inform the consumer about it through SMS, Economic Times reported.
According to telecom industry associations COAI and AUSPI, this regulation was unjust and unfair to them.
According to mobile operators, these directions are beyond the quality of service norms and licence condition and it is actually in conflict in with the statutory duty and functions of TRAI.