Phone numbers are not infinite, and because of this, telecom service providers are having issues finding new numbers to issue to their customers. As a result, TRAI has suggested that telcos can charge customers a fee for the numbers issued to users on top of all the fees already being levied.
TRAI argues that phone numbers are a valuable public resource and are not infinite, thus suggesting that operators should be charged for these numbers. These charges would likely be passed on to consumers, as the Times of India reported.
Additionally, TRAI is also considering penalties for operators who are not using their number resources efficiently. For instance, if a user has a dual SIM and has taken two numbers but doesn’t use one of the numbers for an extended period, the operator often keeps the number active to maintain their user base. Trai believes that practices such as these lead to the inefficient use of resources. They propose that imposing charges and penalties could encourage more judicious use of these resources.
TRAI pointed out that, similar to the spectrum, the ownership of numbering space lies with the government. The government grants mobile operators the right to use these numbering spaces during their license period. The new Telecom Law, passed in December last year, allows for charges on numbers, referred to as ’telecom identifiers.’
To strengthen their case, TRAI mentioned that many countries already charge fees for phone numbers. These countries include Australia, Singapore, Belgium, Finland, the UK, Lithuania, Greece, Hong Kong, Bulgaria, Kuwait, the Netherlands, Switzerland, Poland, Nigeria, South Africa, and Denmark.
TRAI also discussed potential methods for imposing these charges. They suggested that the government impose a one-time charge per number, seek an annual recurring fee for each numbering resource, or conduct centralized auctions for vanity or ‘VIP’ numbers.
TRAI’s recommendations to the government will also address the diminishing availability of numbering resources in the context of 5G, machine-to-machine communications, and the Internet of Things (IoT). They are drawing insights from the various auctions that mobile operators conduct for premium numbers to inform their strategy.
