Wrong call? Reduction in call termination rate will lead to revenue losses

The industry has already seen its revenues being pinched when Trai inexplicably reduced domestic termination charges

The decision of the Telecom Regulatory Authority of India (Trai) to slash international call termination rates by 43 per cent with effect from February 1 may be a case of missing the revenue-bearing wood for the grey-market trees. Trai’s explanation for this cut — from 53 paise to 30 paise per minute — is that it eliminates the possibility of arbitrage from grey market calls that pose a national security threat. Prima facie, cheaper incoming international calls may also appear to be consumer-friendly, which is, after all, the focus of Trai’s mandate. Facts on the ground, however, suggest that both