The Hindu News Update Service
News Update Service
Thursday, January 1, 2009 : 0300 Hrs
Mobile tariffs may fall in 2009; TRAI starts review
New Delhi (PTI): Mobile tariffs may fall in the coming year, as the telecom
regulator TRAI on Wednesday started review of various intra-operator charges
including for calls landing in each other's network.
Issuing a consultation paper on "Review of Interconnection Usage Charge", TRAI
has sought information from all stakeholders on various charges payable by
operators to one another for carriage and termination of domestic and
international calls.
The new telecom operators, who are yet to start offering mobile services, had
opposed the high rate of termination charge of 30 paise a minute and had
demanded
that it should be lowered to a maximum ceiling of 10 paise.
Termination charge is money paid by an operator to another on whose network the
call ends.
TRAI has, however, maintained that termination charge cannot be reviewed in
isolation. The whole of IUC, which comprises Origination, Termination, Carriage
and Transit charges, needs to be looked at.
The new telecom players have said that since most of the calls originate from
their networks would be terminated on the network of existing players, payment
of 30 paise a minute would leave very little scope for them to offer innovative
tariff schemes to their subscribers and would also put pressure on their
margins.
Even Department of Telecom had indicated that termination charges need to be
lowered, as the cost of building up networks has come down considerably over
the last 4-5 years.
Wishing all on Louis Braille Bi-centinal birthday, January 4!
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