In a setback to Vodafone Idea, the Delhi High Court has stayed the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order related to offering SMS with all tariff plans. The TDSAT had put in abeyance a directive by the telecom regulator that made it mandatory for telecom operators to provide SMS services for mobile portability regardless of the tariff plan.The TDSAT had set aside the TRAI order on an appeal by Vodafone Idea, which does not provide outgoing SMS services on its lowest-priced tariff plan. This was meant to push customers to upgrade to a higher tariff plan .
While all telcos do not allow outgoing SMSes on certain tariff plans. Vodafone Idea was charging the biggest premium amongst operators by only allowing outgoing messages on their ₹179 plan, a nearly four-fold increase from the ₹49 plan offered in early 2021, where outgoing text messages were allowed.
“Vodafone subscription curve is a dumbbell-shaped one, thus it has a huge concentration of subscribers on its lowest tariff plan. Voda’s strategy to prevent outgoing SMSs was thus motivated in order to get these subscribers to upgrade to higher plans as well as prevent loss of this base which makes a significant part of their consumer base” an expert told BusinessLine. Therefore the high court ruling will be a major setback for the telco.
Delhi based NGO Telecom Watchdog, as well as Reliance, also complained against Vodafone Idea to the regulator, thus directing TRAI to issue a formal ruling on December 7, “Authority (TRAI)…..directs all access service providers (telcos) to enable, with immediate effect, for all mobile subscribers, both prepaid and postpaid, requesting for a unique porting code, the facility to send SMS on shortcode 1900, in order to avail porting facility……irrespective of the value of the tariff offers/vouchers.”
With the Delhi High Court ruling, TRAI’s previous order directing telcos to allow outgoing SMSs for mobile number portability, irrespective of their tariff plans, will stand.
