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Business / Thu, 13 Jun 2024 Business Standard

Trai's new proposal: You might soon be charged for your phone number

This proposal, detailed in a consultation paper released on June 6, 2024, suggests that mobile operators might face charges for these numbers, which could subsequently be passed on to consumers. With over 1.19 billion telephone subscribers and a tele-density of 85.69 per cent as of March 2024, the demand for numbering resources has surged. TRAI to implement number feesTrai mentions that akin to spectrum allocation, the ownership of numbering space rests with the government. Penalties for telecom operatorsTrai is also considering penalties for operators that hold on to underutilised number resources. In addition to fees for mobile numbers, Trai is considering several other measures.

You may soon have to pay for your mobile and landline numbers. The Telecom Regulatory Authority of India (Trai) has proposed introducing fees for mobile and landline numbers, citing that phone numbers represent a valuable yet finite public resource.

This proposal, detailed in a consultation paper released on June 6, 2024, suggests that mobile operators might face charges for these numbers, which could subsequently be passed on to consumers. Click here to connect with us on WhatsApp

Trai has said that the advancements in communication technologies, including the widespread adoption of 5G networks, machine-to-machine communication, and Internet of Things devices, have necessitated a comprehensive review of the existing numbering system. According to Trai, the introduction of fees aims to ensure the efficient allocation and use of these ‘finite resources’.

Press Release No. 27/2024 regarding Consultation Paper on Revision of National Numbering Plan. प्रेस विज्ञप्ति संख्या 27/2024 - राष्ट्रीय नंबरिंग योजना के संशोधन पर परामर्श पत्र के संबंध में ।Press Release No. 27/2024 regarding Consultation Paper on Revision of National Numbering Plan. https://t.co/AQC11neBSr June 7, 2024

India’s telecommunication transformation

Trai’s document underscores the significant transformation in India’s telecommunications landscape driven by these technological advancements. With over 1.19 billion telephone subscribers and a tele-density of 85.69 per cent as of March 2024, the demand for numbering resources has surged.

To address this, the proposed numbering plan aims for a structured approach to allocate ‘telecommunication identifier’ resources, supporting a wide range of services and efficient expansion. By implementing a fee structure, Trai hopes to regulate the allocation of mobile numbers stringently, encouraging telecom service providers to use these resources efficiently and transparently.

TRAI to implement number fees

Trai mentions that akin to spectrum allocation, the ownership of numbering space rests with the government. Mobile operators are granted the right to use these numbering spaces during their license period. The new telecom law, passed in December last year, permits charges on numbers, referred to as ‘telecom identifiers’.

Many countries, including Australia, Singapore, Belgium, Finland, the UK, Lithuania, Greece, Hong Kong, Bulgaria, Kuwait, the Netherlands, Switzerland, Poland, Nigeria, South Africa, and Denmark, already impose fees for phone numbers. Trai aims to adopt similar measures to manage India’s numbering resources effectively.

To implement these charges, Trai has suggested several methods. The government could impose a one-time charge per number, seek an annual recurring fee for each numbering resource, or conduct centralised auctions for premium or ‘VIP’ numbers.

Penalties for telecom operators

Trai is also considering penalties for operators that hold on to underutilised number resources. If a subscriber has a dual SIM setup but doesn’t use one number for an extended period, operators are hesitant to cancel the number to retain their user base, leading to inefficient use of resources.

In addition to fees for mobile numbers, Trai is considering several other measures. These include the allocation of Mobile Country Codes (MCC) and Mobile Network Codes (MNC) for captive networks, M2M numbering resources, and adjustments to short codes and signalling point codes.

Trai is inviting stakeholders to provide input on the proposed revisions, with a deadline for comments and counter-comments set for early July 2024.

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