New telecom operators want termination charges reduced

New telecom players have called on the telecom regulatory body, TRAI to cut mobile termination charges. New mobile operators such as Datacom, Unitech, Swan Telecom, Shyam, Loop and Reliance Communications say that they would be able to slash mobile tariffs by at least 50 per cent if termination charges are reduced to 10 paise or less.

Termination charges are charges that one operator pays to another to facilitate receiving or making of calls.

The move comes ahead of an open house discussion next week in which TRAI will hold discussion with the industry. New GSM players want termination charges to be completely done away with or kept less than 10 paise a minute to help them compete with existing players as reported in the media.

According to a new telecom operator removing mobile termination charges would create a level playing field as this would establish parity in charges for calls made from new players' networks and terminating on another existing player.

However, existing operators such as Airtel, Vodafone, and Idea Cellular are opposed to the cuts as it would affect their revenues and their roll out plans in the rural areas.

At present mobile operators like Vodafone, Airtel and Idea charge 30 paise a minute termination charges from an operator on whose network a call ends.

TRAI which co-ordinates such issues with the different players in the industry wants to resolve the matter to reach a consensus on termination charges before next week's open house session.