Author(s): Gajavelli Venkateshwara S
The Indian Telecom Regulatory Authority (TRAI) has often received many billing-related complaints from mobile customers. It is seen that most of these complaints emerge from likely lapses or flaws in the billing program and a lack of information and clarity about the myriad of tariff schemes. It is imperative to understand whether customers know the various tariff schemes, the effective utilisation of ‘talk time’ available, and how to select service providers. The popular literature mainly focused on cellular telephony products, various related aspects, and some anecdotal commentary about its social propriety. Besides, a few studies on consumer behaviour have explored the pricing practices of cellular service providers. The study looks to understand consumer behaviour regarding the utilisation of talk time. It may also be noted that published empirical research on consumer behaviour concerning cellular telephony practice has been limited and has begun to emerge only in recent times. Hence, this study attempted to understand consumers’ awareness, the effective utilisation of talk time, and how telecom regulations help optimise or sub-optimise the value to cellular telephony users. The results reveal some alarming facts regarding the consumers’ awareness levels of the call rates, tariff schemes and economical utilisation of telephony services. Such startling revelations have far-reaching implications regarding consumer welfare, the Indian cellular telephone market and the welfare implications of telecom regulatory aspects at large.