Mobile bills to go down as Trai cuts call termination charges to 6 p/min

Agencies
September 20, 2017

New Delhi, Sept 20: Indian telecom regulator TRAI on Tuesday came out with a regulation cutting call termination charges from mobile to mobile by over half to 6 paise per minute effective from October 1. The measure drew stiff opposition from a majority of telecom operators who plan to seek legal redressal.

The sector regulator also plans to phase out Interconnection Usage Charges (IUC) by January 1, 2020.

"For mobile to mobile, termination charge has been reduced from 14 paise per minute to 6 paise per minute with effect from October 1, 2017," the Telecom Regulatory Authority of India (TRAI) said in a statement.

"Such a revision in the mobile termination charge is in line with the international trends."

Domestic termination charges are the charges payable by a telecom service provider (TSP) whose subscriber originates the call, to the TSP in whose network the call terminates.

TRAI further added: "From January 1, 2020 onwards the termination charge for all types of domestic calls shall be zero."

The TRAI paper said: "The elimination of IUC will result in direct benefit to customers through lower tariffs."

It said for other types of calls (such as wire-line to mobile, wire-line to wire-line and wire-line to mobile), the termination charge would continue to remain zero.

The TRAI said: "Further, the cost of termination of calls will drastically come down over a period of two years and very small residual value, if any, can be absorbed by the TSPs in their tariff offerings. As a result, the Authority prescribes a Bill and Keep regime for the wireless to wireless calls effective from the January 1, 2020."

The prevailing Interconnection Usage Charges (IUC) Regulation was notified on February 23, 2015 and came into effect from March 1, 2015.

This regulation of TRAI will give a big jolt to the incumbent TSPs like Bharti Airtel, Vodafone India and Idea Cellular who said a lesser IUC regime will be detrimental for the industry. However, new entrant in the industry Reliance Jio has always demanded zero termination charges.

Reacting to TRAI decision, Cellular Operators' Association of India's Director General Rajan S. Mathews told IANS: "Clearly this is a disastrous tariff order. We have indicated earlier that the regulator has to be transparent about how it is arriving at a number. This massive reduction is disastrous for the financial health of the sector. Majority of our members will look for legal redressal."

He added that customers will not be benefitted from this.

Earlier Vodafone Group CEO Vittorio Colao had urged the Indian government not to reduce mobile termination charges further.

In a letter dated August 22, Colao said: "On mobile termination charges, we are seriously alarmed to see reports that the Regulator is considering a reduction in MTC at a time when the industry is facing such immense hardships. Any reduction in MTC risks large scale site shut-down of already unprofitable sites in rural India and which would greatly diminish the population coverage of mobile telephony."

Interconnection allows subscribers, services and networks of one service provider to be accessed by subscribers, services and networks of the other service providers. If networks are efficiently interconnected, subscribers of one network are able to seamlessly communicate with those of another network or access the services offered by other networks.

The TRAI said it would keep a close watch on the developments in the sector particularly with respect to the adoption of new technologies and their impact on termination costs.

"The Authority, if it deems it necessary, may revisit the aforementioned scheme for termination charge applicable on wireless to wires calls after one year from the date of implementation of the regulation"," it added.

According to industry sources, if the IUC is slashed by 6 paise per minute, on an annualized basis Reliance Jio will make a savings of Rs 5,000 crore. Airtel will make a loss of Rs 2,000 crore, Vodafone Rs 1,500 crore, Idea Rs 1,200 crore, while Reliance Communications and Aircel will benefit by Rs 250 crore.

If the IUC is completely done away with then Reliance Jio will make additional savings of over Rs 4,000 crore. Airtel will make a loss of Rs 1,500 crore, Vodafone and Idea (merged entity) will make loss of around Rs 2,200 crore. However, Reliance Communications and Aircel (merged entity) will benefit by Rs 350 crore.

Comments

Sandesh
 - 
Wednesday, 20 Sep 2017

Now almost everything free. Still decreasing...! Is there any option to increase duration of days, like extending from 24 to 36 or 48 for single day...! cant complete calls

Danish
 - 
Wednesday, 20 Sep 2017

All mobile providers making us to spend more and more on recharge. As per my personal opinion, i used to recharge with 10-50. maximum 100. Now 10 card or flexi they wont do and all offers and validity date extending recharge increased much more higher. We cant avoid that and we will send that, they know

Kumar
 - 
Wednesday, 20 Sep 2017

Jio made visible effect on internet charges. Now almost free. Still all mobile providers getting good profits.

 

Cant imagine that how much they earned/looted before jio launch

Ganesh
 - 
Wednesday, 20 Sep 2017

In the name of GST, even mobile providers also looting much. If we are recharge for 50, we will get only after deducting 10-11 rupees. And call charges also high. Because of Jio internet charges came down

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News Network
March 4,2020

Bengaluru, Mar 4: CM BS Yediyurappa may reconsider plans to hike taxes and curtail populist schemes in his budget on Thursday as the Centre released part of GST compensation it owes the state. Officials said the Centre released the first instalment of the bimonthly compensation for October-November amounting to Rs 2,013 crore.

"This is welcome relief as the government has been scrambling to mobilise funds," said BT Manohar, member of GST consultative committee, government of Karnataka. The second instalment of Rs 1,523 crore is also expected to be released soon.

The CM, in his seventh budget, is expected keep the focus firmly on farmers and give top priority to irrigation, agriculture and welfare schemes.

The irrigation sector is expected to land the lion's share with an allocation of at least Rs 25,000 crore, followed by agriculture. Former CM Kumaraswamy had allocated over Rs 17,000 crore for water resources.

The bulk of funds is likely to go to the Upper Krishna (UKP) and Upper Bhadra projects, as it will help backward Kalyana Karnataka and central Karnataka regions. The two are also significant political blocs. The government will also seek assistance from the Centre for the UKP project in the erstwhile Hyderabad-Karnataka region, which enjoys special status under the Constitution owing to its backwardness. P4

Yediyurappa is also expected to spell out populist schemes for the poor.

Former CM HD Kumaraswamy had allocated Rs 17,212 crore in the previous budget for water resources and Yediyurappa is likely to go well beyond that figure. "Priority will be given to irrigation and farmers," Yediyurappa had said recently. "I am making efforts to present a budget within the financial constraints."

he amounts are released once every two months, but the Centre had fallen behind on payments. PX

"There are indications that another payment will be made."

The state's optimism stems from the fact that the Centre's GST collection crossed the Rs 1 lakh crore-mark for four successive months till February.

However, the CM could still hike tax rates marginally. At a pre-budget meet on resource mobilisation where Yediyurappa is learnt to have expressed willingness to borrow funds, officials from the finance department advocated raising tax rates instead.

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coastaldigest.com news network
April 2,2020

Newsroom, Apr 2: Mohammad Sirajul Hasan, former chief (ameer) of Jamaat-e-Islami Hind, passed away today at a private hospital in Karnataka’s Raichur. 

The 87-year-old was suffering from old age related diseases for past few years and he was staying with his elder son in Raichur. 

He was the Karnataka (then Mysuru) unit chief of the JIH from 1st August,1958 to 6th April, 1984. Afterwards, he was appointed as the national secretary of the organization and held this post till he elected ameer for the term 1990-94. Previously, he also served the Jamaat as its Acting Ameer for about half a year. He was re-elected Ameer of the Jamaat for the terms 1995-99 and 2000-04. 

He had also served as the vice president of the All India Muslim Personal Law Board for several years.

An orator and scholar, Sirajul Hasan was known for his scholarly lectures in Urdu and Hindi.

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News Network
February 28,2020

Kozhikode, Feb 28: Nearly 200 Umrah pilgrims from Kerala were deboarded from their flights to Saudi Arabia from Calicut international Airport here on Thursday after the gulf nation enforced a temporary ban on foreigners seeking to visit the holy cities of Makkah and Madina, following coronavirus scare.

Saudi Arabia halted travel to the holiest sites in Islam over fears about a viral epidemic just months ahead of the annual hajj pilgrimage, a move that came as the Mideast has over 240 confirmed cases of the new coronavirus.

According to Airports Authority of India officials, as many as 84 of passengers from the Saudi Airlines and 104 from the Spice Jet Airlines were denied permission to board the flights and travel to Saudi Arabia.

However, other passengers bound to Jeddah were permitted to fly, they said.

A private tour operator here said two batches of 40 pilgrims each were denied permission to travel to Makkah to perform Umrah on February 27.

Umrah is an Islamic pilgrimage that can be performed at any time of year.

"The pilgrims were denied entry by the two airlines, Spice Jet scheduled at 05.30 hrs and Saudi Airlines at 1130 hrs," Naiful Akbar, a travel agent said.

The Airport Authority of India sources said, "the passengers were asked to alight by the Spice Jet airline staff following an instruction received by them."

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