Hindustan Times (Jalandhar)

Trai slashes ISD call terminatio­n charges

- Navadha Pandey navadha.p@livemint.com

NEW DELHI: The Telecom Regulatory Authority of India (Trai) on Friday slashed the internatio­nal call terminatio­n charge from 53 paise a minute to 30 paise a minute, dealing a blow to telecom operators such as Bharti Airtel Ltd, Idea Cellular Ltd and Vodafone India Ltd.

Telecom firms had sought a hike in the rate to ₹3.5 per minute.

The terminatio­n charge is payable by an internatio­nal long distance operator (ILDO) to the Indian telecom operator on whose network an overseas call terminates.

The new rate takes effect on February 1. The cut follows a steep reduction of the domestic interconne­ction usage charge— paid by one operator to another for landing calls on the latter’s network—to 6 paise a minute from 14 paise.

“While one cannot immediatel­y estimate the size of the impact on most telecom operators, it will definitely be negative and is likely to impact earnings,” an analyst said.

The Cellular Operators’ Associatio­n of India (COAI), a lobby group, had sought a hike in the internatio­nal call terminatio­n charge to ₹3.5 a minute. Reliance Jio Infocomm Ltd had pushed for a cut to 6 paise.

“COAI is of the view that the reduction in internatio­nal terminatio­n charge (ITC) is against national interest, as the country will lose precious foreign exchange due to a sharp reduction of 43% in ITC by Trai, from the existing 53 paise to 30 paise,” Rajan S Mathews, director general of the lobby group, said in a statement.

The loss to telecom service providers on account of the reduced ITC received by them from foreign carriers for incoming internatio­nal calls is expected to be approximat­ely ₹2,000 crore annually, and this will also lead to a loss in revenue to the exchequer, from both licence fees and GST, Mathews said, adding that Trai’s move is a body blow to an already stressed industry.

COAI also conceded that its member Jio has a divergent view on this issue.

Emails sent to Airtel, Reliance Jio, Idea and Vodafone hadn’t been answered as of press time.

 ?? MINT ?? Internatio­nal call terminatio­n charges have been cut from 53 paise to 30 paise a minute
MINT Internatio­nal call terminatio­n charges have been cut from 53 paise to 30 paise a minute

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