Trai may reject Reliance Jio’s demand to slash international termination rates
For international calls, foreign carriers pay local operators 53 paise a minute. As was the case with IUC and in contrast to Jio’s demand, India’s top telcos Bharti Airtel, Vodafone India and Idea Cellular want the international rate to be increased – to Rs1 initially and to Rs 3.50 ..
NEW DELHI: The telecom regulator is unlikely to reduce international termination rates (ITR) – a charge paid by operators to networks that receive calls – to the level of the local equivalent, as demanded by Reliance Jio, because the method of calculating costs varies in both cases.
The Telecom Regulatory Authority of India slashed the local interconnection usage charge (IUC) – paid by operators from where calls originate – by 57% to 6 paise a minute from October 1.
The reduction in IUC hurts the top three telcos, which have more than 60% of the subscribers and receive more calls on their networks. Jio, which offers free voice services, has the most outgoing calls. The Telecom Regulatory Authority of India slashed the local interconnection usage charge (IUC) – paid by operators from where calls originate – by 57% to 6 paise a minute from October 1.
For international calls, foreign carriers pay local operators 53 paise a minute. As was the case with IUC and in contrast to Jio’s demand, India’s top telcos Bharti Airtel, Vodafone India and Idea Cellular want the international rate to be increased – to Rs1 initially and to Rs 3.50 ..
However, the regulator is “broadly clear” that the method used to calculate IUC may not be valid for international termination rates, said a senior Trai official, asking not to be identified. “We are still trying to figure out which model will work here,” the official said.
At the heart of the method used to determine IUC is the principle that one operator should not gain at the cost of a competitor. IUC is between two operators and the charges between them should be the “minimum avoidable charges,” the official said. “If we apply that in international calls, then it’s a straight 6 paise. But here, you are dealing with multiple foreign partners,” the official said.
At the heart of the method used to determine IUC is the principle that one operator should not gain at the cost of a competitor. IUC is between two operators and the charges between them should be the “minimum avoidable charges,” the official said. “If we apply that in international calls, then it’s a straight 6 paise. But here, you are dealing with multiple foreign partners,” the official said.
At the heart of the method used to determine IUC is the principle that one operator should not gain at the cost of a competitor. IUC is between two operators and the charges between them should be the “minimum avoidable charges,” the official said. “If we apply that in international calls, then it’s a straight 6 paise. But here, you are dealing with multiple foreign partners,” the official said.
At the heart of the method used to determine IUC is the principle that one operator should not gain at the cost of a competitor. IUC is between two operators and the charges between them should be the “minimum avoidable charges,” the official said. “If we apply that in international calls, then it’s a straight 6 paise. But here, you are dealing with multiple foreign partners,” the official said.
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