New Delhi: What started as a consumer-choice issue is turning into a larger debate over telecom tariffs, digital adoption and even future network investments. Telecom operators are pushing back against the regulator's draft regulations that require them to offer more voice-and-SMS-only recharge plans with prices reduced in line with the exclusion of data benefits.
India's top telcos Reliance Jio, Bharti Airtel and Vodafone Idea are arguing that there is no evidence of strong consumer demand for such plans, and that the move could push users away from digital services in the absence of data in plans. They also said the norms go against the tariff forbearance-based regime, could increase spam by unregistered telemarketers, and may impact their 5G return on investments and future 6G investments.
“If sufficient demand existed for voice-only special tariff vouchers across all validity periods, service providers would already be offering them in a competitive market. The fact that they have not done so suggests that demand does not exist,” the Cellular Operators Association of India (COAI) said in its submission to the Telecom Regulatory Authority of India (Trai) on 5 May.
The association, which represents private telecom operators, said the earlier requirement by Trai for a 365-day voice-only plan was a “reasonable and balanced compromise”. It, however, said extending this to every validity period could be excessive and overly intrusive.
Last month, in an amendment to its draft regulations on consumer protection, Trai observed that operators have fallen short of their earlier mandate on voice-and-SMS-only plans, limiting choice and blunting price benefits for users. Telcos currently offer a couple of long-duration options such as 80/84 days or annual packs for such services. On the other hand, the validity period options for data-bundled packs have a long range that starts from as low as 14 days.
Voice-and-SMS-only plans were first mandated by Trai in December 2024. Operators were asked to offer at least one special tariff voucher (STV) exclusively for this category with a validity span not exceeding 365 days.
“After the introduction of these exclusive voice and SMS STVs, several concerns and representations from consumers and their associations have been received by the Authority, expressing need for shorter-duration voice and SMS only packs,” Trai said in the draft regulations.
The regulator noted that low-income consumers or those using feature phones require shorter validity packs so that they can recharge as per their needs. Trai said consumers who do not require data are often compelled to buy bundled packs with data, leading to avoidable expenditure and limited choice.
Reliance Jio opposed Trai's arguments, in its 5 May submission to the regulator, saying that “40-45% of subscribers on voice-only plans are still purchasing data add-ons, indicating that even in this segment is not purely voice centric.”
Among users on the ₹189 entry-level bundled low data plan with only 2 GB data, 88% users actively consume data at significant levels, Jio said. “The market has effectively evolved into a data first ecosystem, with voice as a complementary service. Therefore, the assumption of a possible, sizable, distinct ‘voice-only’ customer base is misplaced,” the operator said, adding that the percentage of spammers in these plans are higher compared to other plans.
Countering Trai’s argument on long-duration plans, operators argued that longer-validity packs are actually more economical for low-income consumers. Even though the upfront payment might be higher, the effective per-day cost of a quarterly or yearly pack is typically lower than doing multiple shorter-duration recharges, they said.
For instance, Reliance Jio offers plans priced ₹448 for 84 days with 1,000 SMS and ₹1,748 for 336 days with 3,600 SMS, according to its app. Vodafone Idea lists plans at ₹470 for 84 days with 900 SMS and ₹1,849 for 365 days with 3,600 SMS on its website.
While telecom operators have warned over digital exclusion on extensive promotion of voice-only plans, they also fear downtrading by users to such packs with zero data in exchange for modest savings. “Such a step can drive such downgrades among low-income users, creating a structurally ‘data-excluded’ segment and re-introducing a digital divide that India has spent years closing,” Bharti Airtel told the regulator in a submission dated 5 May.
On proportional reduction in tariffs, the operators said 4G and 5G networks operate on shared, integrated IP-based infrastructure, core costs such as spectrum, tower operations, and backhaul do not proportionally decrease simply because data is removed from a plan.
“There is no objectively verifiable standalone ‘cost’ of voice, SMS or data within such bundles that can simply be extracted—forced proportionality would push operators to redesign products from first principles and turn legitimate commercial judgment into regulatory micro-management,” Bharti Airtel said, adding that the suggestion that consumers are left with only quarterly or yearly choices is incorrect.
To be sure, consumers already have access to an affordable entry-level pack of around ₹199 with 28-day validity. This pack is primarily voice and SMS-led, with only a nominal 2GB data allocation meant for essential services such as UPI (unified payment interface), OTPs and basic apps, Airtel said.
Vodafone Idea said market-driven tariff design has ensured both affordability and digital proliferation at scale. “The current tariff structures are not exclusionary but are, in fact, designed to maximize consumer benefit, and any prescriptive intervention in this regard may be counterproductive,” Vodafone Idea, the third largest telco, told the regulator.
Consumer groups have supported Trai’s draft regulations, saying it could help vulnerable users avoid paying for unwanted data.
Chennai-based Citizen consumer and civic Action Group (CAG) stressed that the effectiveness of the voice/SMS only package mandate will depend on strict implementation and enforcement, warning that vague pricing norms and weak monitoring could dilute its impact.
It said that without strong visibility norms, telcos may technically comply but limit the discoverability of cheaper voice-and-SMS plans across retail and digital channels.