New Delhi: In a move to particularly benefit users, Telecom Regulator TRAI announced a cut in landline and mobile tariffs that companies pay to terminate calls on competing networks.
In a bid to boost fixed line phone connections in the country, telecom regulator TRAI on Monday removed charges that a landline service provider has to pay to the other service providers for transmitting its customers’ phone calls — a move that is likely to lead to lower tariffs.
While the termination charge from fixed-line phones has been reduced from 20 paise per minute to zero, in case of mobile phones it has been slashed by 30% to 14 paise from 20 paise per minute.
BSNL, the largest fixed-line provider in the country, said tariffs will fall “substantially”, while smaller mobile operators like Uninor said customers “will benefit” from the measure.
“We will pass on the benefits to consumers and this can happen from as early as April,” BSNL CMD Anupam Shrivastava said.
Officials from Airtel, Vodafone and Idea Cellular — the country’s top three mobile telecom providers — did not comment on the development, saying they are “studying” the measure.
These operators had opposed the reduction in termination charge during deliberations with TRAI earlier as they enjoy maximum termination of calls on their networks due to large subscriber holdings.
Some of the operators had managed to get a stay on a similar cut in termination charge in 2009 from telecom appellate tribunal, TDSAT, though this was struck down by the Supreme Court in 2011.
TRAI had initiated the process for a fresh reduction in termination charge late last year.
However, according to telecom analysts, bigger operators are expected to follow suit when smaller players start cutting tariffs.
Rajan Mathews, director-general of industry body Cellular Operators Association of India (COAI), which is controlled by bigger operators, said the measure will be beneficial for consumers. “Some of this reduction in costs will get passed on to consumers. The quantum will depend on individual operator.”
However, smaller operators are happy with TRAI’s decision.
“This offers a level-playing field for new operators. This will give more flexibility to tariff planning and directly benefit consumers,” a spokesperson for Uninor, controlled by Norwegian telecom giant Telenor, said.
Arvind Kumar, advisor at Trai, said the measure is expected to give a boost to the usage of fixed-line telephony, which has been facing a major slowdown due to high growth in wireless phones. “This move will help fixed-line players like BSNL and MTNL to utilize their idle capacities and launch innovative plans. Also, their costs will come down.”