Auspi hits at Vodafone, Airtel for opposing IUC review

Coming down heavily on GSM players like Vodafone Essar and Bharti Airtel for trying to scuttle Trai's move to review network interconnect charges, Auspi backed the telecom regulator's initiative saying it will lead to reduction in call charges.

"We support Trai initiative to review, which will pave the way for further reduction in the telecom tariffs and subsequent benefit to the consumers, particularly in rural areas," Secretary General of Association of Unified Telecom Service Providers of India (Auspi) SC Khanna said in a letter to telecom regulator Trai.

Phone companies pay one another Interconnection Usage Charge (IUC) for using each other's network to complete calls. Often, IUC changes affect consumer tariffs.

In 2009 IUC regulation, Trai had fixed mobile termination charge (MTC) at 20 paise per minute for all local and national long distance calls; 40 paise for incoming international calls and put a ceiling on carriage fee of 65 paise for domestic long distance calls.

Auspi said that whenever Trai takes some consumer-centric initiatives, GSM service providers try to scuttle the growth through misleading reports in the media as they always fear further competition in the telecom sector.

Auspi alleged that Vodafone Essar and Bharti Airtel are favoring the current regime of IUC which distorts competition in favor of large operators.

"We feel that the consultation process is in the interest of the consumers and the industry," Khanna added.

He added, "As per weighted average cost calculation across operators indicates that the MTC (mobile termination charge) should be between 5 paise per minute to 7 paise per minute in the interest of consumers, industry growth and affordability."