Trai cuts ISD incoming call termination rate

Lloyd Doyle
January 13, 2018

The Telecom Regulatory Authority of India (Trai) on Friday reduced the global call termination rate to 30 paise, which is 53 paise now, making calls to India cheaper.

The low ITC in India has resulted in a skewed pattern of ILD traffic, with incoming to outgoing calls in the ratio of about 20:1, some stakeholders argue.

The Cellular Association of Operators in India (COAI) had earlier submitted to Trai that about 4.5 billion calls originate from India to overseas markets, while 88 billion calls land in India from other countries.

According to Trai, the reduction in termination charge would reduce arbitrage with domestic call tariffs, therefore plugging the illegal VoIP gateway business in India, which will in turn lead to the eradication of the grey market for worldwide incoming traffic.

Trai also said that the grey route process posed serious security concerns, apart from causing significant leakage in the revenue that would otherwise be accrued with the country and the operators here.

"The Indian telecom industry is passing through one of its toughest phases with severe financial stress ..." "The loss to Indian telecom service providers on account of the reduced expected to be ₹2,000 crore annually, and this will lead to a loss in revenue to the exchequer, from both licence fee and GST", said Rajan S Mathews, Director General, COAI.

The reduction does not benefit any customers and would only benefit foreign carriers at the expense of domestic players, he said. while strongly urging the government and the TRAI to re-examine the regulation, and rescind it. TRAI issued a consultation paper on "review of interconnection usage charges" on August 5, 2016, for seeking comments of industry stakeholders.

Other reports by Iphone Fresh

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