Trai mulls cut in link-up tariff

In a move that would cause a further fall in telecom bills, the Telecom Regulatory Authority of India (Trai) is planning a consultancy paper on reduction of interconnect user charges (IUC).

These charges are paid by one telecom service provider to another for enabling calls from one network to the other.

The paper on IUC has been pending for some time. Trai Chairman Nripendra Misra was earlier quoted as saying that the regulator would roll out the paper after examining various methods and global practices to calculate the termination charges.

“Trai has conducted much work on this front and is readying a framework that will be the basis of the consultancy paper. The paper will be followed by open houses (public debates). After the industry’s comments, Trai will decide on the reduction of termination charges,” said a source close to the development.

However, the date when the paper would be rolled out has not been ascertained, though sources said it would be in October-end or early November.

The present interconnect charge of 30 paise per incoming minute was fixed in 2003. The price was considered high even then. Now, with equipment prices falling, a revision was called for, said industry analysts. The regulator had decided to review the charges after two to three years.

Analysts expect operators to pass on the benefit of the reduction in interconnect charges to subscribers. This will result in a further fall in telecom bills across the all circles.

Separately, the regulator is looking at a paper on interconnectivity between operators on Next Generation Networks (NGN).

The move gains importance as major players like Bharti Airtel, Reliance Communications, state-owned Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have rolled out these networks.

A majority of telecom networks in the country are, unlike NGNs, not internet protocol-based. That’s way they need a system and regulation for interconnect and other issues.

NGN is a broad term to describe some key architectural evolutions in the telecommunication core and access networks that are being deployed in the country. These are internet protocol-enabled and will help usher in the era of convergence.