TRAI cuts domestic call termination charges by 33 per cent

The Telecom Regulatory Authority of India (TRAI) has slashed domestic termination charges for all types of domestic calls, including fixed to fixed, fixed to mobile, mobile to fixed and mobile to mobile, by 33 per cent to 20 paise per minute.

Domestic call termination charge now stands reduced from 30 paise to 20 paise per minute while, on the other hand, incoming termination charges have been raised by 33 per cent from 30 paise to 40 paise per minute.

TRAI today issued the 'Telecommunications Interconnection Usage Charges (Tenth Amendment) Regulations'. The key features are:

• Termination charge for all types of domestic calls, including fixed to fixed, fixed to mobile, mobile to fixed and mobile to mobile has been reduced to 20 paise per minute from 30 paise per minute.
• Termination charge for incoming international calls would be 40 paise per minute against the existing charge of 30 paise per minute. TRAI expects the service providers to pass on this benefit in the form of lower tariff for outgoing international calls.
• Ceiling on carriage of domestic long distance calls retained at 65 paise per minute. Non-reduction of this ceiling would encourage national long distance operators to expand into rural areas.
• Origination charge has not been specified as it would be residual from tariff after payment of other charges. This would provide service providers
  flexibility of introducing innovative tariff plans.
• Transit/carriage charge from Level-II trunk automatic exchange to short
  distance charging area (SDCA) to be 15 paise per minute as against the existing charge of 20 paise per minute.
• Intra SDCA transit charge to be less than 15 paise per minute down from less than 20 paise per minute.
• Termination charge for 3G voice calls shall be same as 2G voice calls.
• The new charges will be effective from 1 April 2009.

TRAI said it expects the new framework to promote growth of the network.

The prevailing IUC regulation was notified on 29 October 2003 and came into effect from 1 February 2004. A review was conducted through a consultation paper of 17 March 2005 and a revised IUC regime on 23 February 2006, which has been implemented from 1 March 2006.