International Incoming Call Termination Charges Cut

International Incoming Call Termination Charges Cut

International Incoming Call Termination Charges Cut

Telecom Regulatory Authority of India (TRAI) reduced global call termination charges (ITC) to 30 paise from the 53 paise. The new rates will be in effect from February 1.

The termination charge is paid by an worldwide long distance operator, from whose network the call originated, to the Indian telecom operator on whose network it terminated. ITC is paid by global operators to local telecom networks that receive calls.

Telecom firms levy termination charge on operators from whose networks calls have been made, for transmitting them to the subscriber.

TRAI said with the revision, the arbitrage opportunity between ITC and domestic call tariffs would become so insignificant that illegal VOIP gateway business in India would become unviable and the grey market for ILD incoming traffic would eventually cease to exist.

The current charges of global interconnect charges amount to 53 paise per minute. TRAI issued a consultation paper on "review of interconnection usage charges" on August 5, 2016, for seeking comments of industry stakeholders.

The latest amendment has come after all these deliberations, TRAI said.

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. The slash in IUC had miffed the telecom operator such as Bharti Airtel and Vodafone which had said that the new rule would benefit Mukesh Ambani-led Reliance Jio.

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