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TRAI Slashes ISD Incoming Call Termination Rate to 30 Paise

14 January 2018, 12:23 | Dale Webster

Representational image. Image Source Pixabay

Cutting of international call termination charges may cost dear to telcos

The prices of worldwide calls are expected to drop.

Adding to the woes of the embattled telecom sector, the telecom regulator may cut global call termination or interconnect usage charges by half.

Telecom Regulatory Authority of India (TRAI) on Friday slashed worldwide incoming call termination rate to 30 paise per minute from 53 paise per minute.

Whatsapp and FaceTime among other apps offer high quality voice and video calls.

Regulations, 2018, the telecom regulator notified that the termination charges have been reduced from 53 paise to 30 paise per minute.

The halving of calling charges was estimated to swipe Rs 5,000 crore in revenues from incoming global calls, a report by ET said.




The termination charge is paid by an global long distance operator, from whose network the call originated, to the Indian telecom operator on whose network it terminated.

The new rate will be effective from February 1.

The move is against national interest as the country will lose precious foreign exchange due to a sharp reduction of 43% in ITC, said Rajan Mathews, director general, Cellular Operators Assocation of India, in his reaction to the move.

According to Trai, the reduction in termination charge would reduce arbitrage with domestic call tariffs, therefore plugging the illegal VoIP gateway business in India, which will in turn lead to the eradication of the grey market for global incoming traffic.

The number of worldwide calls made to India were comparatively lesser than those originating from the country.



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