The move will allow telecom operators to get more revenue from international calls, but since revenues from international incoming calls is very small -- around 1-2% – it won't make much of a difference.
In a move that will marginally benefit telecom operators, Trai has increased international termination charges (ITC) from 0.30 paisa per minute to forbearance regime within a range of 0.35 paisa to 0.65 paisa per minute.
The move will allow telecom operators to get more revenue from international calls, but since revenues from international incoming calls is very small — around 1-2% – it won’t make much of a difference.
The is the first time that a forbearance regime is prescribed in ITC. The telcos, however, have to follow the prescribed range in fixing charges and offer a non-discriminatory rate to everyone.
ITC is a charge payable by an international operator to an Indian operator if the call originates from the former and terminates in the latter’s network. Since more calls are made from international destinations to India rather than vice-versa, a higher international termination charge benefits Indian operators.
The new regime will come into effect from May 1, 2020.
Another reason why revenue-wise it will not be a big gain for Indian operators is that now-a-days most of the international traffic has shifted to over-the-top (OTT) apps like WhatsApp and Skype.