ISD incoming call termination rate slashed

ISD incoming call termination rate slashed

After slashing the domestic interconnect charges, the Telecom Regulatory Authority of India (Trai) today slashed the global interconnect charges from 53 paise per minute to 30 paise per minute, increasing the woes of Indian telecom operators.

On the contrary, Cellular operators' association COAI, a couple of months ago, had favoured a steep hike in global termination charges stating that there is a need to bridge the gap between blended termination rate paid by Indian operators for outgoing worldwide calls and the termination rates received by them on global incoming calls.

The latest rule from TRAI issued as part of the Telecommunication Interconnection Usage Charges (Fourteenth Amendment) Regulations, 2018, will benefit the operator which carries calls outside the country, officially referred to as the International Long Distance Operator (ILDO). Back in February 2015, TRAI increased the ITC to 53 paise per minute from 40 paise per minute. The new regulations will come into force from February 1 next month.

However, industry body COAI said the decision will lead to annual revenue loss of Rs 2,000 crore which the Indian telecom operators earn from foreign service providers.

More news: Zuma and President Kenyatta meet to discuss politics and business
More news: Amazon CEO Jeff Bezos donates $33 million to send Dreamers to college
More news: Samsung's new HBM2: next-gen GPUs with 32GB HBM2 @ 1.2TB/sec

One of the executives belonging to older carriers said, after Friday's announcement, that industry was would have benefitted from incremental forex of Rs 6,000 crore had the ITC been increased to Rs 1, and an additional forex of around Rs 10,721 crore had the ITR been eventually increased to Rs 3.5 per minute.

"Incumbent revenue from worldwide calls terminating here will be directly and proportionally impacted by the 43% reduction in ITR", said Mritunjay Kapur, head of telecom, media and technology at KPMG India.

"Any reduction in termination cost is going to have a major impact".

Telecom firms levy termination charge on operators from whose networks calls have been made for transmitting them to the subscriber. Trai also said the "menace of grey route poses serious security threat to the country apart from causing significant leakage in the revenue accruable to the country" and telecom operators."Authority is of the view that, while deciding on the appropriate level of ITC in the country, curbing the menace of grey route should be a more important regulatory priority than facilitating the shift of the worldwide incoming traffic from OTT route to carrier route", Trai said. An operator charges their rival an Interconnection Usage Charge when a user ends a domestic call on their network.

Related Articles

  • 1.03 is Gilead Sciences Inc's (NASDAQ:GILD) Institutional Investor Sentiment

    1.03 is Gilead Sciences Inc's (NASDAQ:GILD) Institutional Investor Sentiment

    The biopharmaceutical company reported $2.27 earnings per share for the quarter, beating the consensus estimate of $2.13 by $0.14. Finally, Princeton Portfolio Strategies Group LLC raised its stake in shares of Gilead Sciences by 0.4% in the second quarter.
    Switzerland Bans Cooking Lobster in Boiling Water

    Switzerland Bans Cooking Lobster in Boiling Water

    But crustaceans have decentralized nervous systems, meaning it takes more than one blow to the head to stun them, unlike fish. Italy recently passed a similar law saying that restaurants are not allowed to keep live lobsters on ice before boiling them.
    Dissidia Final Fantasy NT North America and Europe open beta trailer

    Dissidia Final Fantasy NT North America and Europe open beta trailer

    If you need some tips, be sure to check out our short guide on how to summon in Dissidia Final Fantasy NT . Square provided details of Dissidia: Final Fantasy NT's Beta, including session times.
  • #11 Terrapins Fall to Michigan State

    #11 Terrapins Fall to Michigan State

    Guard Shay Colley had 17 and Sidney Cooks had 10. "I like the fact that we're taking care of the ball". Miles Bridges was held scoreless at the intermission, going 0-for-3 in 13 minutes of work.
    Region's condo prices increase 24%, houses up 12%

    Region's condo prices increase 24%, houses up 12%

    However, we do foresee an upswing in demand in the latter portion of the year, as prospective buyers adjust to the new realities. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.
    Brightline's 'higher speed' train service will begin this weekend in Florida

    Brightline's 'higher speed' train service will begin this weekend in Florida

    Orlando alone attracted 68 million visitors in 2016, according to Visit Orlando, the city's official tourism association. Meanwhile, Brightline announced that Patrick Goddard has been promoted to president.
  • Football coach Barry Bennell 'abused boy 100 times'

    Football coach Barry Bennell 'abused boy 100 times'

    He said he had believed that Mr Bennell could help him realise his dream of playing football professionally for Manchester City. The court was read a transcript of a police interview with Bennell conducted in February 2017.
    Bulls outlast Knicks, 122-119, in two OTs

    Bulls outlast Knicks, 122-119, in two OTs

    The Bulls have won both contests against the Knicks this season, including a five-point victory in their last matchup. The result may have been disappointing, but Jack did everything in his power to lead the Knicks past the Bulls .
    Eastward-looking Zeman is favourite as Czechs vote for president

    Eastward-looking Zeman is favourite as Czechs vote for president

    A half-naked woman, a possible Femen activist, attacked Zeman in a polling station to prevent him from voting on Friday afternoon. The man now in the job - Milos Zeman - known for his outspoken anti-immigration views, is leading opinion polls.
  • After interviewing with Colts, Rhule decides to stay at Baylor

    After interviewing with Colts, Rhule decides to stay at Baylor

    The Indianapolis Colts aren't leaving any stone unturned in an attempt to replace the recently fired Chuck Pagano at head coach. Head coach Matt Rhule of the Temple Owls during play against the Southern Methodist Mustangs in the first half at Gerald J.
    Javier 'Chicharito' Hernandez Might Leave West Ham In January

    Javier 'Chicharito' Hernandez Might Leave West Ham In January

    Since arriving at the Hammers during the summer, Hernandez has failed to live up to expectations and the club are now prepared to listen to offers for him.
    49ers linebacker Reuben Foster arrested for marijuana possession

    49ers linebacker Reuben Foster arrested for marijuana possession

    The former Alabama product played in 10 games past year with San Francisco, still finishing second on the team with 59 tackles. His urine sample was found to have been diluted, which was treated the same as a positive test.