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techkenyot.com February 25, 2018


ISD incoming termination rate cut to 30 paise from 53 paise

13 January 2018, 04:17 | Hattie Nash

ISD incoming termination rate cut to 30 paise from 53 paise

ISD incoming termination rate cut to 30 paise from 53 paise

Telecom Regulatory Authority of India (TRAI) on Friday reduced global call termination charges (ITC) to 30 paise from the 53 paise now with effect from February 1, this year.

Adding to the woes of the embattled telecom sector, the telecom regulator may cut worldwide call termination or interconnect usage charges by half.

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.

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Thereafter, a one-day workshop was held following which application service providers (ASP) and ILDOs were asked to furnish information regarding incoming and outgoing ILD voice minutes.

The move is against national interest as the country will lose precious foreign exchange due to a sharp reduction of 43% in ITC, said Rajan Mathews, director general, Cellular Operators Assocation of India, in his reaction to the move. Besides, an increase in ITC will generate additional funds for Indian operators, help buildtelecom infrastructure in rural areas and enable affordable tariffs to consumers.

Most of these worldwide calls terminated on Bharti Airtel, Vodafone and Idea's network.

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But TRAI said the move could curb the use of grey routes and the proliferation of OTT (over-the-top) routes for worldwide voice calls.

The regulator pointed out that it was doing so to curb the "grey route", which was posing a security threat to the country.

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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