TRAI reduces domestic termination charges

10 Mar 2009

The Telecoms Regulatory Authority of India (TRAI) has ruled that termination charges should be lowered by up to 33% from 1 April 2009. The regulator has called for charges for fixed to fixed, fixed to mobile, mobile to fixed and mobile to mobile calls to be reduced from INR0.3 (USD0.006) per minute to INR0.2. Conversely, the TRAI has said that the charge for incoming international calls will be raised to INR0.4 per minute from INR0.3 per minute. The increase for incoming international calls is expected to allow operators to lower tariffs for outgoing international calls. The ceiling on domestic long-distance calls will be retained at INR0.65 per minute, with the regulator claiming this will encourage operators to expand into rural regions. Looking further forward the TRAI has also stated that termination charges for 3G calls will be the same as 2G calls. State-owned Bharat Sanchar Nigam Ltd (BSNL) is expected to lose out following an additional decision; the regulator determined that the charge for calls made to locations within the same circle, all of which are carried by BSNL, will fall from INR0.2 per minute to INR0.15. The drop is expected to lead to a loss in revenues for the telco.