TRAI issues directive to Vodafone Idea & Airtel

TRAI has approached Airtel and Vodafone Idea asking them to inform their subscribers transparently about when their validity will be terminated followed by detailed information as to how they can opt for available plans and minimum recharges using their existing prepaid account balance.

TRAI, in its letter clearly remarked that until subscribers aren’t well informed, “Till such time operators should not discontinue services of such customers who have balance in prepaid accounts equal to minimum recharge amount.”

In an investor presentation held on November 21st, Vodafone Idea said that this move would result in a significant reduction of the incoming-only and non-paying customer base. Credit Suisse remarked on Vodafone Idea’s latest move saying, “While this could theoretically help ARPUs, we suspect revenue growth could still stay elusive in the current market-share flux.”