Telcos fear new guidelines on VAS will hurt business

May cause a revenue loss of Rs 1,500 crores to government

PTI | September 12, 2011



Value-Added-Services providers are up in arms against regulator Trai's proposed directives on the procedure for providing VAS to users as the former feel that this could kill the industry and may also cause a revenue loss of Rs 1,500 crore to the government.

"It's not clear why TRAI would back such a move... it would result in a revenue loss of Rs 1,500 crore to the Government. Besides crumbling a Rs 10,000 crore eco-system that employs over 12,000 people," one of the leading VAS providers told PTI.

Telecom Regulatory Authority of India (TRAI) had proposed directives in July to service providers on the procedure for providing VAS to users in a move to protect the interest of consumers.

As per the proposals, the service providers need to obtain confirmation from the consumer through SMS or e-mail or Fax or in writing within 24-hours of activation of the VAS.

The service provider should charge the consumer only if the confirmation is received and in case they did not receive any confirmation services should be discontinued.

However, the service provider feels that such directives are not consumer friendly. Mobile subscribers like to have a simple user experience to enjoy their favorite services such as music songs, cricket scores, among others.

According to an industry source, " If this proposal is implemented, it will, in effect deny the customers their right to consume entertainment content they wish to, which will become the reality as a result of the unviable business model.

TRAI's move is seen as restricting the growth of these services because the proposed directive expects the mobile users to send SMS as confirmation of subscription service every month.

The Indian mobile market has less than 45 per cent SMS penetration rate and this gets as low as 20 per cent in rural areas. The country has a very low literacy rate and the English literacy rate is even lower at 15 per cent and such directive does not take into consideration any of these ground realities.

"Such a move, if implemented, will impact the mobile content industry adversely. As content partners, we invest to constantly bring sports, entertainment and other utility services to the mobile consumers while on the move, enriching their lives," said Jatin Ahluwalia, the founder of vRock Mobile, a startup in the inmobile VAS space.

Last year, Trai had floated a paper seeking comments from telecom operators on measures for protecting consumers? interest and redressal of customer grievances.

The consultation paper aimed to strengthen the regulatory framework and provide adequate protection to telecom consumers.

 

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter