TRAI adjusts ITC regime

20 Apr 2020

Sector watchdog the Telecom Regulatory Authority of India (TRAI) has revised the pricing regime for International Termination Charges (ITC) following a review of the market. Under the new system, the TRAI has imposed a forbearance regime with a range of INR0.35 (USD0.0046) per minute to INR0.65 per minute. To maintain a level playing field, however, the regulations require access service providers to offer the same non-discriminatory ITC rate to standalone and integrated International Long Distance Operators (ILDOs).

Explaining the move, the TRAI notes that the fixed rate of INR0.30 per minute it had imposed in February 2018 to mitigate potential grey market concerns was amongst the lowest in the world. Consultation with industry stakeholders late last year had indicated that the move was an unwarranted overcorrection, with the system exacerbating other pressures on the industry, such as the shift in traffic from carriers to over-the-top (OTT) routes.