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
July 21,2020

Bengaluru, Jul 21: Students who are Covid-19 positive but are asymptomatic will be allowed to write the Common Entrance Test (CET) scheduled on July 30 and 31 for entrance into professional courses in Karnataka.

According to the Standard Operating Procedure (SOP) issued by the Department of Health and Family Welfare for CET, space should be allotted for students who have tested positive. Such students will have to be transported to and from the exam centre in an ambulance.

According to the SOP issued yesterday, candidates with COVID-19 “shall provide a risk consent certificate for taking up the exam.” The SOP also says “they shall inform about their status to the authorities concerned in advance to make the necessary arrangements.”

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News Network
February 6,2020

New Delhi, Feb 6: BJP MP Tejaswi Surya said on Wednesday that the majority community has to remain vigilant or Mughal rule will return to the country, as he slammed the anti-CAA protest at Shaheen Bagh.

He was participating in the debate on Motion of Thanks on the President's Address in Lok Sabha.

Referring to the ongoing protest at Shaheen Bagh against the Citizenship Amendment Act, he said, "Unless majority community remains vigilant, the days of Mughal Raj may not be far away."

Surya also praised Prime Minister Narendra Modi for resolving several critical issues which had been pending for several decades.

The CAA, he said, was aimed at resolving the issues emanating from Partition and added, "The new India cannot to built without healing the wounds of the past."

He said that the CAA was about giving citizenship to persecuted minorities in Pakistan, Bangaladesh and Afghanistan and not for taking away anyone's citizenship.

Under the leadership of Modi, Surya said, several issues of the past have seen closure. These include abrogation of Article 370, construction of Ram temple, Bodo problems and abolition of Triple Talaq.

K Sudhakaran (Cong) said that a time when the economy was going through its worst phase and unemployment was high, the President in his speech talked about making India a USD 5 trillion economy by 2024.

On the comments of the government functionaries that fundamentals of the economy are strong, he said the same expression was used by the then US President George Bush, days before the collapse of the America's iconic investment banker Lehman Brothers.

Not only that, Sudhakaran said even before the Great Depression, the then US President used to say that fundamentals of their economy were strong.

Anupriya Patel (Apna Dal) demanded that the government set up All India Judicial Services Commission to ensure representation of the backward community in the judiciary.

Khagen Murmu (BJP) regretted that West Bengal government was not implementing the welfare schemes of the Centre in the state.

Badruddin Ajmal (AIUDF) said that people of all communities have fought for freedom of the country and it would be incorrect to declare everyone opposing the government's policies as 'gaddar' (traitor).

He said that the government should talk to people protesting against the CAA at Shaheen Bagh and other places, and explain the provisions to them.

Shrirang Appa Barne (Shiv Sena) demanded that the ruling party fulfil all promises it had made to the people of the country.

He regretted that although the government promised to double the income of farmers by 2022, farmers were still committing suicide.

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News Network
January 8,2020

Bengaluru, Jan 8: Accusing the BJP of running a "fake news factory" at full potential, former chief minister Siddaramaiah on Tuesday said according to reports only Rs 669 crore of additional flood relief funds are being released by the Centre for the state as opposed to the ruling party's claim of Rs 1,869.85 crore.

Reacting to his attack, the State BJP unit, without clarifying on the actuals of the amount being released, said it believed in speaking the truth and not spreading lies.

Siddaramaiah, leader of the opposition in the state assembly, tweeted: "Reports from State govt officials tells that only Rs 669 crore of addl funds (sic) are released in 2nd instalment as opposed to the claim of Rs 1870 Cr by @BJP4Karnataka leaders. At a time when manufacturing industries are closing, BJP's fake news factory is running at full potential!!"

Calling BJP leaders "devotees of the God of lies," he said in another tweet that Prime Minister Narendra Modi released an additional Rs 669.85 crore moved by Chief Minister B S Yeddyurappa's plea, taking the total amount to Rs 1,869.85 crore. He said it was funny that they were attempting to depict the total relief amount as 1200+1869.85 equalling to Rs 3,069.85 crore.

Siddaramiahs tweet was in response to Karnataka BJPs tweet last night claiming that the High-Level Committee (HLC) Chaired by Union Home Minister Amit Shah has approved the release of Rs 1869.85 crore as central assistance to the state towards flood relief. This was in addition to Rs 1200 crore already released by the Centre in October 2019, the BJP unit had said.

On Monday, the HLC had approved additional central assistance to seven states affected by floods last year, from National Disaster Response Fund (NDRF), including Karnataka.

While a PIB release states that Rs 1869.85 crore was approved for Karnataka, according to sources in the state government the figure was inclusive of Rs 1,200 crore released in October. Earlier in the day, Chief Minister B S Yediyurappa while expressing confidence that more funds will be released in later stages, maintained that Rs 1869 crore has been released in addition to Rs 1,200 crore earlier, and thanked Prime Minister Narendra Modi.

"...funds will never be enough, they (central government) will release in stages, they have released such big amount- earlier Rs 1200 crore, now again Rs 1869 crore- I thank Prime Minister Narendra Modi for it," he told reporters here.

Revenue Minister R Ashoka said the state government will press for more funds in the days to come, and the state government will fulfil promises made to those hit by floods.

Karnataka faced two spells of unprecedented rains and floods last year, resulting in widespread damage to life and property, following which the state government had submitted a report to the centre claiming loss was to the tune of about Rs 38,000 crore.

Reacting to Siddaramaiah's attack of "fake news factory" against it, the state BJP tweeted "Ayyo @siddaramaiah Avare, We surrender to You as we are incapable of running Fake News Factory like You or @INCIndia.

We believe in speaking the Truth like Gandhiji, not spreading lies like Goebbels. Kannadigas still remember the "Lies Bhagya (a scheme)" you gave them as CM from 2013-18."

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