Science

TRAI slashes termination charges for worldwide long distance operators

TRAI slashes termination charges for worldwide long distance operators

The prices of worldwide calls are expected to drop.

Telecom regulator TRAI (Telecom Regulatory Authority of India) on Friday slashed worldwide incoming call termination rate to 30 paise, from 53 paise, to curb the "grey route", an official statement said on Friday.

The incumbent carriers always favoured hiking worldwide calling rates to Rs 1 initially and Rs 3.50 later on.

This is the second blow after Trai reduced domestic termination charges from 14 to 6 paisa in October past year.

The termination charge is paid by an global long distance operator, from whose network the call originated, to the Indian telecom operator on whose network it terminated.




The latest rule from TRAI issued as part of the Telecommunication Interconnection Usage Charges (Fourteenth Amendment) Regulations, 2018, will benefit the operator which carries calls outside the country, officially referred to as the International Long Distance Operator (ILDO).

However, Indian telecom operators such as Bharti Airtel, Idea Cellular and Vodafone India are not happy with the decision.

The prevailing IUC Regulation was notified on 23rd February, 2015 and came into effect from 1st March, 2015.

In a background note, it mentioned the existence of grey market which routes the ISD calls made to India by setting up illegal VoIP (voice over internet protocol) gateways which needs to curbed.

Most of these worldwide calls terminated on Bharti Airtel, Vodafone and Idea's network. "Telecom industry is of the view that the reduction in ITC is against national interest, as the country will lose foreign exchange, due to reduction of 43% in ITC by Trai", COAI stated.


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