TRAI axes fixed termination rates, lowers MTRs

24 Feb 2015

Sector watchdog the Telecom Regulatory Authority of India (TRAI) has amended the regulation on termination charges, lowering the Mobile Termination Charge (MTC, also known as the mobile termination rate, MTR) – the price a mobile operator must pay to terminate a call originating from its network on a rival network – from INR0.2 to INR0.14 (USD0.00321 to USD0.00225). With regards to calls from fixed lines, however, the TRAI has taken more drastic steps in an effort to ‘promote investment and adoption of wireline networks (so that they become an effective vehicle for the delivery of high speed internet).’ To that end, the TRAI has eliminated the MTC for calls originating from fixed lines as well as the Fixed Termination Charge (FTC) for calls between fixed lines, or from mobiles to fixed lines. Termination charges for incoming international calls, however, were increased from INR0.40 to INR0.53. The TRAI notes that termination rates were last reviewed in 2009, but were historically revised every two to three years.