Trai cuts termination charges on ISD calls; Reliance Jio happy, others not

Trai cuts ISD incoming call termination rate to 30 paise

This comes on the back of excessive use of data driven apps that allow subscribers to make worldwide calls at a fraction of the cost of a voice call.

Indian telcos are expecting a loss of Rs 2000 crores annually owing to the reduction in International Termination Charge (ITC) from the existing 53 paise to 30 paise, a statement from Cellular Operators Association of India (COAI) said on Friday.

It said: "The Authority is of the view that, while deciding on the appropriate level of ITC (international termination charge) in the country, curbing the menace of grey route should be a more important regulatory priority than facilitating the shift of the global incoming traffic from OTT route to carrier route".

Even the earlier ITC of ₹0.53 per minute was far lower than the world average of International Settlement Charge (ISC), which is ₹3-3.50 per minute. In 2011 there was one outgoing call from India. Besides, an increase in ITC will generate additional funds for Indian operators, help buildtelecom infrastructure in rural areas and enable affordable tariffs to consumers.

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Global termination charges are paid by the telecom operator from whose country the call is made to the service provider here on whose network the call terminates.

The menace of grey route poses serious security threat apart from causing significant leakage in the revenue accruable to India and its telecom service providers. Theand proliferation of OTT (over-the-top) route for carrying global voice traffic has many non-cost factors, it added.

However, the COAI argued that the move of reducing the rate by almost 43 per cent could result in loss of foreign exchange, as well as a loss of revenue to the exchequer from licence fee and GST.

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