Trai extends deadline for comments on interconnect rate review

Telecom regulator Trai today extended, by three weeks, the deadline for receiving industry's comments on the contentious interconnection usage charges discussion paper, in effect marginally pushing back the timeline for the entire review process.
Early last month, Trai had decided to review the interconnection usage charges -- paid by one telecom operator to another for connecting phone calls -- and had sought public comments on its discussion paper by September 5, and counter comments by September 19.
The discussion paper had stirred up a storm in telecom industry, with incumbent operators under the aegis of cellular association charging the sectoral regulator of favouring new entrants with its policies.

The cellular body had termed the regulator's consultation on call connect charges as "unfair" on incumbent operators and had alleged that Trai's discussion paper was an indicator of "bias creeping in".
COAI had questioned the regulator's urgency in initiating the process of interconnect review, and had also approached the Telecom Department to express its concern over the issue.
In a statement today, Trai said, "keeping in view the request of stakeholders for extension of time for sending their comments, it has been decided to extend the last date for submission of written comments up to September 26, and for counter-comments upto October 10."

Sources said that typically consultation process leading up to the decision by Trai takes between 4-5 months.

At present, the termination charges for a mobile to mobile local and national long distance call is pegged at 14 paise per minute.
Trai had sought public view on how domestic termination charges should be computed -- cost based or Bill and Keep (BAK). Cellular body had accused Trai of trying to introduce 'Bill and Keep' method, saying that such a move would mean that new operators (read Reliance Jio) would not have to pass on payment to existing operators (like Bharti Airtel, Vodafone and others), while the latter will have to 'incur costs'.

Launching a scathing verbal attack on Trai last month, COAI Director General Rajan S Mathews had alleged, "This is a misguided effort from Trai that will help new entrants, at the cost of the incumbent...We are extremely disturbed by this, this further tilts the level playing field."
Yesterday Reliance Jio, while announcing disruptive offering of free voice calls for life, and data tariffs priced as low at one-tenth of the prevailing market rates had said it plans to garner 100 million subscribers at the "shortest possible time". RJio's tariffs will be effective starting January 1, 2017, after its free data and voice offer comes to an end on December 31, 2016.