Union Government, Extraordinary, 2004-01-16, Part III-Section 4, Ref. 301-4/2004-(Econ.)

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TELECOM. REGULATORY AUTHORETY OF JNDIA &
NOTIFICATION
[New Det. the 16 Janaary, 2004

No, 301-4/3004-(Bcon.) —In exstese ofthe powers confer upon il under Sob-section
(2) of Sectioa 11 ofthe Telecom Regulsiory Authority of India Act, 1997 as amended by TRAL
‘Amendment Act 2000, the Telecom Regulatory Authority of India TRAN hereby makes the
following ondct by an arnemimentto the Teleconnsuaticaron Tariff Onder, 19 by notation inthe
lfc Ganzi, i respect of tis t which Teleoommanicaion services within India and outside
India shall boprovided,

‘THE TELECOMMUNICATION TARIFF (THIRTIETH AMENDMENT] ORDER,
2004 -

(of 2004)
‘Section |
1. Short tite, extent and commencement

() This Order shall be caltad * The Telecommunication Tariff (Thirtetn
Amendment) Order; 20047,
‘THE SAZETTR OF INDIA EXTRAORDINARY Par it—5. 1

(ii) This Order shall come ito force from the date of its publication in
the Official Gazette

Saction It

2.4 Under Section 1! (Gefiniions) of the Telecommunicatian Tariff Order, 1999
hereinafter referred to as TTO (as amended by 17" Amendmant Order dated
72.04.2002}, sub-clause ()) of clause 2 shall stand substituted by the
Tollawing

(I) Reporting Requirament’ means the obligation of a service provider to
report to tne Authority any new tariff for telecommunication services under this
Order andior any changes therein within SEVEN days from the date of
implementation oF the said tarifl for information anct record of the Authority
after conducting @ selt-check to ensure thal the tariff plans) is/are consistent
‘with the regulatory principles in ll respects which inter-afia include UC.
Compliance, Nor-disorimination & Non-predation.”

22 Under Section Ill, Ciause 4 (Forbearance) of the TTO (as amended by
214 Amendment to TTO dated 13.06.2002) shall be substituted ta read
as under:

‘Where the Authority has, for the time being, fortone from fixing tari for
any telacoramunication service or part thereof, a service provider shall
be at erty to fix any taf for such telacommuricalion servioas;

Provided that service provider shell comply with the reporting
requirements in respect of such tari

2.3 Undar Section Ill, in Clause ? (Reporting Requirement) of the TTO sub-
clauses (ill) & {iv) (inserted vide 17" Amendment to TTO dated 22.01.2002)
shall stand deleted

Section Ht

3. _in Schedule! (Cellular Mobile Telecom Service) of TTO undar the
existing clause 6 (vide 24th Amendmant to TTO dated 24.01.2003) in respect
of “Tariff for pre-paid service’. after proviso (d) a new proviso (9) shall be
inserted namely:

€} All services which do not affect “talk lime value" meluding incoming
voice calls / SMS shall continue tbe avaliable to the Pre-pald
[omens 4] Sogn arora,

‘subscribers during the entire val eriod even after 8 talk ti
values ohausta ve rae initing

Dr HARSHA VARDHANA SINGH, Principal Adviout-comeey
laDVTAMVazaWUs Es}

Annex &
EXPLANATORY MEMORANDUM

A Ame x relating to

foth

1. The Telecommunication Tariff (27" Amendment): Order, dated
25.04.2008 stipulates that all telocom service providers shall adhere to
the provisions of the beporting ‘requirements as por TTO, 1989 as
amended by 17" Amendment stipulating that all service providers shall
file their tant plans at Ipast FIVE working days prior to its launch in the
market, .

2. In viow of the review of the IUC Reguiaticn by the Authority d gelt-
Check regime wae spedified under which service providers were asked
to impternent the tartf plans after conducting'a Salf-check of their tariffs
with the regulatory prindppies including tariff being 1UC Compliant,

3. The Authority has now! nofified revised IUC Regulation, 2003'datod
29.10.2003 stipulating. cost-based Interconnect usage charge
Furthermore, the price ‘developments of Veice-telephony show that
‘here is intense competition. With a high degree of competition, prior
approvel of tarifs may not be required 38 compatition replaces
‘eguiation by the regulator, The Auihority ia of the view thet current
declining tariff ervironmient fs an ideal time to switch over fram an Ex-
ante tas regulation t} Ex-post tariff regulation meaning thereny,
complete freedom would be given to operators in the matter of offering
{anf plans in the market wihin the framework of the exiating TTO. The
Authonty has already taid dawn broad regulatory prineiples to determine
45 10 whether a particulay manner of pricing aervice is anti-compattive
discriminatory ate, Further the Authonty has forbome with the main tari
ftems in Cellular and Basic services (except rural éubscribers tari &
‘oarring tarifs). The JUG regime specified by the Authority reflects the
“HE. GAZETTE OF IND 14: EXCCRAQRDINARY Part]

underlying costs praviding the service. Also the IUC charges 28
specified wil implicitly funiclion ae a floor to the retail artis and thereby
‘Seope for predatory pricing or cross-subsidization is limited.

4. The Author is also ofthe view thatthe practice of seeking approvals

to a large rember of plans somé of which are not even implemented ‘

Saaisstnesdlons pressure on the limited rescurces of the Auloriy.

<r the purpose of this amendment to TTO is 1p avoid undue pressure
on regulatory resources 38 well

5. The Authority has, therefore, decided to allow the flexbility to al
telecom service providers ta report their tariff plans to the Authorty
within 7 days from the data of implementation after conducting a Set”
‘check to ensure consistency of the tariffs with the relevant regulatory
principles which mer-alia includes Tariffs being JUC Compliant, Non-
Fiscriminetory end Non-pradatory and hence this amerdment.

6. However, the Authority would interven in matters where the stated
ari regulatory principles are violated by the service providers.

7. This Amendment shall be pplicable to si! telecommunication servioos
“wdieh fall under the purview of reporting requirements of TTO, 1888,

Note, enyisione_of facili ing gaia
eT ibe

4. The Authority has received numbor of complaints fram subscribers i
regarding bar of incoming calls / SMS fecilty even within the validity E
paid once the tak time becomes “i.

2. aunty ven stout ad aot scarring te ate ou het |
yhile paying ihe ‘Procassing Fee" the pre-paid subscribers purchase &
see ele! soda norte nein crt 8
a ae ae cy poe ave ercore, aonober oud :

fomain connected to avail all services which do not have a bearing on w
the talk value during the entire walidty period contracted even after the
entire talk value exhausted. 4

2 The Authority has, therefore, decided all services which do not affect 1
alk ime valu" including Ineoming voice calis / SMS afl continue to
be available to the Pre-paid subscribers for the entire validity period
‘evan after the talk fime value is exhausted.

i ag, Or a i, il, No eT