TRAI to Direct Jio and Airtel to Stop Offering Unlimited 5G Data: Report (2024)

Highlights

• TRAI may direct Reliance Jio and Bharti Airtel to stop offering unlimited data in their 5G tariff plans.
• TRAI has concluded that offering unlimited data as part of any plan is against the fair usage policy principle of tariff regulations.
• The principle of fair usage policy applies to 4G plans and should apply to 5G tariffs as well, according to TRAI.

India's telecom regulator, the Telecom Regulatory Authority of India (TRAI), is reportedly planning to direct Reliance Jio and Bharti Airtel to stop offering unlimited 5G data in their tariff plans. This action follows an examination by the regulator into a recent complaint of predatory pricing against the two operators by Vodafone Idea, according to a report by Financial Express.

Also Read: TRAI to Direct Telecom Operators to Report 5G Users Separately: Report

Vodafone Idea doesn't offer 5G Services

Vodafone Idea accused the two telcos of having significant market power, claiming they have a 30% market share across circles and that their 5G tariffs are predatory since they offer services below cost. Vodafone Idea is the only telco that has not started 5G services but offers 5G Ready SIM cards, whereas Airtel and Jio offer 5G services on existing 4G packs.

After examining the matter, TRAI believes that the tariffs cannot be considered predatory since they are not below cost, according to sources quoted in the report. Offering 5G services at 4G rates cannot be termed predatory. However, TRAI concluded that providing unlimited data as part of any plan goes against the fair usage policy (FUP) principle of tariff regulations, and therefore the two telcos should stop it.

Also Read: Vodafone Idea Continues Its Streak; Lost 1.3 Million Wireless Subscribers in Jan: TRAI

Fair Usage Policy Applies for 5G as well

If TRAI does issue this directive, Jio and Airtel will be able to continue with their data plans at 4G rates but will have to reduce the speed to lower limits if the data is consumed before the new billing cycle begins. Sources quoted in the report stated that the principle of fair usage policy applies to 4G plans and should also apply to 5G tariffs.

When subscribers exhaust their data limit before a new billing cycle begins, telecom service providers reduce the data speeds to 64 Kbps under 4G plans. The operators are required to publish this information with their tariff plans on their websites and send alerts to subscribers when data usage reaches 50%, 90%, and 100%.

Also Read: TRAI Recommends Measures to Improve Coverage and Infrastructure in Ladakh: Report

5G in India

Both Airtel and Jio have reached over 3000 5G City mark, respectively. However, the regulatory agency maintains that offering unlimited data is prohibited under the tariff regulations, and therefore, the operators should adhere to the regulations.

Recently, Tata Play, a standalone DTH operator, accused Jio and Airtel of predatory pricing with regard to their broadband plans offering live TV channels. However, TRAI's direction on unlimited offers to Jio and Airtel will not address this issue.