After slashing local termination charges, TRAI’s axe could fall next on international IUC

Telecom Regulatory Authority of India first rattled the mobile operators with a 57 percent cut in mobile termination charges. Before the end of the calendar year, it would have taken one more step in adding to the misery of most service providers – particularly those earning a hefty fee from the 53 paise per minute international termination charges. The regulator is working on cutting those charges as well, according to an official familiar with the development.

“TRAI’s September 19 document on regulations on domestic charges specifies that it will issue a separate regulation on the issue. So, definitely, the charges will be cut and that should happen before the end of the year,” the official said. The quantum of the cut that the regulator may effect is not clear yet.

International termination charges are paid by the telecom operator from whose country the call is originating to the service provider here on whose network the call terminates. The charges are payable on calls made to mobiles as well as landlines. The international operator recovers this charge from its subscriber.

“Another issue raised in the CP (consultation paper) was about prescribing international termination charge and prescription of revenue share between Indian ILDO (international long distance) and access provider in the international termination charge. The authority is of the view that there is a need for more deliberation on the issue, and, therefore, the authority will issue a separate regulation on this issue,” TRAI said in its September 19 tariff order on cutting local mobile termination charges.

TRAI had raised the international termination charges to 53 paise per minute from 40 paise in February 2015 while cutting the mobile termination charges to 14 paise per minute from 20 paise per minute. The regulator further cut the mobile termination charge to 6 paise in its September 19, 2017 order while leaving the subject of revising international termination charges open to further deliberations.

A cut in international termination charges would go down well with the likes of AT&T and Verizon who had opposed the hike last time. Needless to say, none of the Indian operators will be happy, coming as it will, soon after the cut in mobile termination charges.