TRAI allows mobile operators to decide international call termination rates

The Telecom Regulatory Authority of India on Friday allowed mobile operators to decide the international call termination charges on their networks.

The regulator said that the international call termination charges will be brought under 'forbearence', which essentially means that the companies will have the flexibility to decide the tariffs.

However, the regulator said that the same can be done within prescribed range of 35 paise/min to 65 paise/min against a fixed rate of 30 paise/minute earlier -- a move that is expected to benefit telecom operators.

International termination charge is the rate payable by an Indian International Long Distance Operator (ILDO), who carries the call from outside the country to an access provider in the country in whose network the call terminates.

While the regulator has given a range with floor and a ceiling, and left it to operators to set the rate under a forbearance regime, it has, however, mandated that operators will offer non-discriminatory rate for such termination charges to everyone.

The regulator has said that an access services provider shall offer non-discriminatory rate of such termination charge to their own associated ILDOs as well as standalone players, to ensure level-playing field between standalone and integrated companies.

TRAI said that as this new regulatory regime for the rate of international termination charge is being prescribed for the first time in the country, it will closely monitor its implementation, including the trends and patterns of international long distance voice traffic in the country.

"The Authority, if it deems necessary, may review this regime as well as the rate of ITC in due course of time," it said.

When contacted, industry body COAI said that this is a move in the "right direction" and that TRAI has taken into consideration the financial situation of the operators.

"This goes towards bringing parity with international operators," Cellular Operators' Association of India (COAI) Director General Rajan Mathews said.