Telcos Challenge TRAI Over VAS Guidelines, ISD Deactivation


Telecom operators are going to file a petition in the TDSAT (Telecom Disputes Settlement and Appellate Tribunal) opposing the TRAI’s order that directed them to take explicit consent from subscribers for activating value added services (VAS) on their mobile numbers, reports The Hindu Businessline. The COAI (Cellular Operators Association of India) confirmed the development to the publication, and said that it was opposed to the method prescribed by the TRAI.

In July 2012, the regulatory body had directed that service providers must obtain confirmation from subscribers through SMS or e-mail or FAX or in writing within twenty four hours of activation of the value added service and charge the subscriber only if it is received from him for the service and discontinue the service if no confirmation is received from him, in case of the service being activated on an outbound or inbound call. It had also asked operators to inform the consumer via SMS, the the due date for renewal of value added service, the charges for renewal and toll free telephone number for unsubscribing the value added service, three days before the date of renewal. The TRAI had also instructed them to ask for subscriber’s consent for renewal in case he had insufficient credit balance in his mobile account.

The TRAI had said that through the directions it intended to check the activation of VAS products especially on prepaid mobile connections, without the customer’s explicit consent. It also mentioned that it had been receiving complaints from consumers about providers renewing VAS products even when the available balance in the customer’s account was insufficient.

While the guidelines attempted to check false billing and unsolicited activation of VAS products, it also implied that customers would need to go through multiple steps to activate services, which might act as a hurdle for VAS players and telcos. So the telcos decided not to comply with the regulations, and contest them through a legal petition.

Interestingly, the telcos also approached the TDSAT objecting to TRAI’s last order that instructed them to deactivate ISD services on pre-paid mobile connections to check misleading lottery winning or prize winning calls and Wangiri phone calls from International numbers, since subscribers were losing money calling back. The COAI has said that the TRAI order was irrational, unreasonable, arbitrary, illegal, and without application of mind, according to an Economic Times report. The TDSAT has asked TRAI not to take any action against telcos till a decision is taken. We’re also of the view that deactivation of ISD services is not a solution to unsolicited International calls. Instead, the TRAI and telcos should find a way to filter them.

Related:
- TRAI Tells Telcos To Stop ISD Services On Prepaid Numbers In 60 Days
- TRAI: Telcos Will Need Explicit Subscriber Consent For Activating & Renewing VAS Products


  • vasinsider

    It si all these oBd companies that makeing mess in telecom market. and vas companies like onmobile, one97, spice and the lot. ban these companeis from operating in the market and all will be fine. or else ask all operators to take vas ‘selling’ in house so that these people dont cheat and defraud people for gains. and these are not small gains! ommobile went ipo with these gains and others also tried

  • Mark Willium

    You are wrong buddy -Check how many subscribers enjoy VAS on their Mobile Phones? Your Data Services, CRBT, PCA are given by those vas companies.

  • vasinsider

    mr mark, call up those subscribers ad ask them if they actually bought them (crbt/pca/data services) or were those service actiivated on their phone with their consent after they got an obd or even without one??? 95% people will say they didnt even know they had bought anything. ask operator call centres what is max % of call subsjects for them

  • Ratan

    If this guideline came into effect, it would have meant the complete END to the VAS Industry! And the guideline is EXTREMELY impractical. How can you expect a guy in the interior part of India to mail you or reply you with a SMS/Email. There are voice products which the subscribers simply dials in and enjoy the service. !!!!!Hope TRAI sets guidelines which are practical and is just for all the parties.

  • Ratan

    #Vasinsider – I do agree with your point..But it is just not the VAS/OBD vendors who spoil the ecosystem, the Telcos also encouraged to get maximum revenue out of it..!!
    Now the Greener VAS has already started creating problems for most of the companies.. We will now see a more cleaner environment..!

  • KK

    TRAI has done the best as to subscribe any service there should be consent of Customer.
    Maximum VAS companies are earning lot of money by doing false billing and Operators are getting major share. As around 60% of VAS revenue comes from false billing so operators do not want consent of customer.I have seen many case of false billing.

  • Ratan

    Yes..They are definitely earning…The operators have cleaned up the mess now..However the TRAI guidelines is extremely unreasonable and impractical and helps no one.. How do you expect a rural illiterate caller to revert with a SMS.

  • vasinsider

    only airtel has cleaned up mess. other operators still operating how they used to. still there are so many complaints which is why trai is geetting more jittery about why sms consent is not started yet.

    TRai came up with regulation for sms consent last year, but it is still not activated by ANY operator. obd companies like one97 sstill run free and still are stealing money. just a bunch of frauds who in collusion with oepratos are trying to make fool out of trai by going to tdsat and all.

    Rural illeterate calller cannot revert with sms, so for them lets have ivr where they call to confirm after subscribing on obd. even that will ‘kill’ the industry the way you say it as no one will call back as only about 5% of overall vas activateions are genuine. rest all is fraud.

  • VasOutsider

    if there is money to be stolen it can not be by messenger (read the company which makes OBD calls) but by the service provider (read content / vas provider). Getting facts and work flow correct will help.
    Love your thoughts otherwise.

  • vasinsider

    outsider, i am an insider so am telling you these companies do the ‘money deduction’ for operators. it is these messengres who have maximum acess to balance deduction. it is them that service providers tell to put an acelerator on activations from obd. content providers also do backend activations for sure but the volumes there are nothing compared with obd

  • VasOutsider

    I see. I am sure those in-house second confirmations and operator’s Customer Service Delivery teams guiding these companies, should help consumer cause.

  • vinod

    @vasinsider maximum profit from vas get by Operator so operator intention should change .
    Without operator involvement nothing can happen.