Incoming Free For Life!

Compiled from Rediff Business and TRAI website

The launch of prepaid cards with lifetime validity for incoming calls has become the latest trend in an attempt to woo customers & also to tap into the fast growing prepaid segment within the Indian mobile user market.
According to operators, the advantage of this scheme is that a prepaid user can continue to receive incoming calls for life even after the recharge period is over, as against the current system of restricted validity, based on the value of the recharge package.

Indian mobile users have always been attracted to the longest validity period without recharges & these schemes (Free For Life) launched by almost all of the GSM operators (Airtel, Hutch, MTNL, Idea) and Reliance (CDMA) comes close on the heels of Tata Teleservices’ launch of a scheme allowing users to receive calls for two years without recharging!

But is there a catch? Or can the mobile be free for life?

Telecom Regulatory Authority of India (http://www.trai.gov.in/) has raised several doubts on the viability of these schemes. TRAI in its meetings & consultation papers has indicated that these plans raise the following issues:

• Long-term viability and sustainability


• Whether lifetime can exceed the balance license period of the operators and if not, would the plans vary in their validity duration?

What will happen to the plans if the traffic patterns and Interconnect User Charges regime changes substantially, and the matter of protection of interest of consumers who are subscribing to the lifetime tariff plan.
TRAI expects the final decision in this regard would be taken by February 2006.

So what does it mean for us as consumers?

1. All the service providers specify that the user must recharge every six months to ‘enjoy uninterrupted services’!


2. Call charges will be more expensive than the normal prepaid charge. ‘Free’?!


3. On an average, the card of Rs 999 gives you a talk time of Rs 25!


4. ‘Full Talk Time’ – are exclusive of taxes, even for a chota recharge!


5. The call rates are ~Rs 1.99 for all local calls and ~Rs 2.99 for all STD calls!

I as a consumer, would want to wait till end of this quarter for three reasons,

• Verdict from the TRAI is expected soon;


• BSNL is expected to slash STD rates by ~70%


• Introduction of One India tariff plan

Wishing you all a lifetime talk!