TRAI Mandates Affordable Voice and SMS Only Plans: Vodafone Idea Shares Surge

The Telecom Regulatory Authority of India (TRAI) has taken a significant step towards protecting the interests of mobile consumers by issuing the Telecom Consumer Protection (Thirteenth Amendment) Regulations, 2026. This new regulatory framework, released on Tuesday, makes it mandatory for telecom service providers to offer a wider range of Special Tariff Vouchers (STVs) that focus exclusively on voice and SMS services. The primary objective of this amendment is to ensure that customers who don't require data services have access to affordable recharge options that suit their specific needs and financial capabilities.

Addressing the Gap in Voice and SMS Vouchers

TRAI observed that there was a noticeable lack of variety in the availability of voice and SMS-only STVs in the current market, while most existing plans were bundled with data, and the few voice-only options available were often restricted to long-term validity periods. This created a challenge for low-income customers who prefer short-term, low-cost options. By introducing these new regulations, TRAI aims to bridge this gap and provide more flexibility to the consumer base that relies primarily on calling and messaging services without the need for internet connectivity.

The Consultation and Feedback Process

The finalization of these regulations was the result of an extensive consultation process initiated by the regulator. TRAI had originally released a draft of the amendment for public consultation on April 7, 2026. The response from the industry and the public was overwhelming, with the authority receiving a total of 1,132 responses from various stakeholders. Following the review of these responses, an Open House Discussion was conducted on June 15 to further deliberate on the proposed changes. The feedback received during this process played a crucial role in shaping the final version of the Telecom Consumer Protection (Thirteenth Amendment) Regulations, 2026.

Key Features of the New Regulations

Under the revised rules, telecom service providers are now required to offer voice and SMS-only STVs with appropriate tariff reductions, while this is particularly mandatory for validity periods of 30 days or less, for which the operators already provide STVs bundled with voice, SMS, and data. Plus, the regulator has mandated that operators must provide at least one voice and SMS-only STV that can be renewed on the same date every month. In cases where a particular date doesn't exist in a month (such as the 31st), the renewal date will be the last day of that month. On top of that, operators are required to offer at least one more voice and SMS-only STV with a validity period equal to the validity of their existing voice, SMS, and data bundled plans.

Market Reaction and Stock Performance

The announcement of these new regulations had an immediate impact on the stock market, particularly for major telecom players. 26 rupees. This positive movement suggests investor optimism regarding the potential for increased subscriber retention among low-income users. 87%. These market movements come at a time when telecom companies are heavily focused on increasing their Average Revenue Per User (ARPU).

Context of Rising Tariffs and ARPU Focus

The move by TRAI comes in the wake of recent tariff hikes by major telecom operators. For instance, Bharti Airtel increased the starting price of some of its unlimited daily-data prepaid plans from 299 rupees to 349 rupees in August. The company's mobile ARPU stood at 264 rupees in the June quarter, showing an increase from 250 rupees in the same period the previous year. As companies strive to boost their earnings through higher-priced data plans, TRAI's intervention ensures that the segment of the population that doesn't use data isn't forced to pay for services they don't consume, while the regulator believes that this revised tariff framework will better serve the diverse needs of the Indian consumer base.