Trai starts process to review interconnect charges

The regulator had specified interconnect charges in 2003 and revised that in 2006 and 2009

The Telecom Regulatory Authority of India (Trai) on Wednesday initiated a process to review interconnect charges (those paid by one cellular operator to another for connecting and completing voice calls on their networks).

In 2003, the regulator had specified interconnect charges, revising those in 2006 and 2009. The prevailing interconnect usage charges (IUC) were notified in 2009. Currently, the mobile voice call termination charge for all local and national long-distance is 20 paise a minute; it is 40 paise a minute for international calls.

On Wednesday, Trai issued a consultation paper on interconnect charges. It sought comments of stakeholders on a host of issues, including the approach for prescribing the charge, the methodology for estimating mobile termination costs and the appropriate international termination charge.

Earlier this year, the regulator had indicated network interconnect charges should fall.

These charges have a direct impact on the rates for end-consumers. According to sources, 15-20 per cent of operators’ revenue comes from termination charges.

“The consultation paper initiates a fresh review of the IUC regulations, an integral part of rate structuring for operators. We hope the final recommendations will offer a level-playing field to all operators and benefit customers by moving towards a lower IUC regime,” said a Uninor spokesperson.