TDSAT stays TRAI order on MNP on Vodafone Idea appeal

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has granted interim relief to Vodafone Idea Ltd (Vi), which challenged a recent regulatory order mandating telcos to enable a short code facility for switching to another telco. Vi had approached the tribunal last week, according to two people aware of the matter, who spoke on the condition of anonymity.

TDSAT asked the Telecom Regulatory Authority of India (TRAI) not to take any “precipitate action” in the matter and will hear the matter again on 22 February. Mint has seen a copy of the 24 December order released on Monday. The interim relief would mean that Vi and other carriers can continue to offer low-value plans that do not have SMS facility, and subscribers would have to pay to use text messages or move to other tariff plans. This, according to analysts, would mean higher average revenue per customer (ARPU) for carriers.

On 7 December, TRAI directed telcos to immediately enable the facility to send a text message or SMS shortcode 1900, to port from one carrier to another, for all prepaid and postpaid subscribers, irrespective of the tariff value of the offer or voucher. TRAI said not providing the service breaches mobile number portability (MNP) rules.

In its petition, Vi said it fully complies with all MNP rules and tariff regulations. According to the people cited above, the carrier argued that such a mandate would essentially mean a change in tariff regulations since it implies that all tariff plans should have a minimum facility of providing SMS.

Further Vi said TRAI’s 7 December direction was indirectly forcing the carrier to change its tariff plans, which cannot be done through directions under the TRAI Act, one of the two people said.

The regulator has kept tariffs under forbearance, which means that carriers can decide on their tariff plans but require the regulator’s approval.

Carriers including Airtel, Vodafone Idea, and Reliance Jio do not include SMS bundled in their low-value prepaid recharge plans that are available under ₹100. Most plans below this level have data and talk-time bundled but do not have text messages. Consumers will have to pay more on top of these low-value plans to activate text messaging facilities. Livemint