TRAI raises international call termination charges

The Telecom Regulatory Authority of India (TRAI) has decided to revise international call termination charges from the existing International Termination Charges (ITC) to forbearance regime but within a prescribed range of 35-65 paise per minute against a fixed rate of 30 paise per minute earlier.

The 16th Amendment to the Telecommunication Interconnection Usage (ITU) Charges Regulations, 2020 allows service providers to increase international call termination charges to a maximum of 65 paise per minute and comes after two years of the regulation that had slashed the termination charges for international incoming calls to a fixed 30 paise per minute.

However, to ensure a level playing field between the standalone and integrated international long-distance operators (ILDOs), TRAI has mandated that the Access Service Provider shall offer the non-discriminatory rate of ITC to everyone.

The ITC is a charge payable by an Indian ILDO for carrying the calls originating from outside the country to the access providers in India whose network the call terminates.

Welcoming the TRAI decision as the right step to protect the interest of Indian telecom operators, COAI Director-General Rajan S Mathews said, “Responding to the consultation paper, we had submitted that the regulator should prescribe a higher rate of ILD termination charge to ensure parity with other countries that terminate calls to India. With this revision, ILDOs are expected to adjust their charges accordingly and regain parity with international countries.”

He further pointed out that the new regime will ensure the country does not lose precious foreign exchange in paying higher international termination rates to other countries. “The Indian telecom sector needs more such measures to ensure robust telecom infrastructure and financial health,” Mathews said.

TRAI also said that it will closely monitor the trends and patterns of international long-distance voice traffic in the country, the implementation of the new regime, and will review the ITC from time to time if required.

by Shubhendu Parth | shubhendup@cybermedia.co.in