TRAI to review termination charges

2 Oct 2008

Indian news source The Economic Times is reporting that the Telecoms Regulatory Authority of India (TRAI) has requested data from all mobile operators as it prepares to review mobile termination charges. Operators have been asked to submit traffic data by the end of October 2008, and after studying the information the TRAI is expected to fix the methodology it plans to adopt for revising the termination charges. ‘We must determine the methodology for reviewing termination charge; it can be a cost-based model or it can be determined by considering the long-term incremental cost. Unless we analyse the data, we cannot quantify any reduction in termination fee. Even if we issue a consultation process, we must specify the different methodologies,’ the report quoted a TRAI source as saying. At present operators can charge no more than INR0.03 (US0.006) per minute for termination under regulations created in 2003. The move to review the charges comes following requests by the Department of Telecommunications (DoT) that the TRAI should cut termination rates.