Trai increases international termination charges

By: |
April 18, 2020 2:45 AM

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 telcos, however, have to follow the prescribed range in fixing charges and offer a non-discriminatory rate to everyone.The telcos, however, have to follow the prescribed range in fixing charges and offer a non-discriminatory rate to everyone.

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.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Facebook plans to change its name, says report
2RBI’s recurring payments rule good but might create some disruption for businesses: PCI’s Vishwas Patel
3The 10 unicorns from India that add heft in its global race