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 28,2020

Bengaluru, Mar 28: A case has been registered against an Infosys employee in Bengaluru for a shocking social media post urging people to "go out and sneeze" and spread the highly contagious COVID-19 virus that has infected over 800 people across the country and claimed 19 lives.

"Let's join hands, go out and sneeze with open mouth in public. Spread the virus," the man wrote on Facebook.
"A case has been registered against the person. Further investigation on. Looking forward to get adequate support from your end during investigation," Sandeep Patil, Joint Commissioner of Police, Crime, Bengaluru city tweeted by tagging along a tweet by Infosys.
Taking congnisance of the post by its employee, the Infosys said the post was "against the code of conduct and its commitment to responsible social sharing".
"Infosys has completed its investigation on the social media post by one of its employees and we believe that this is not a case of mistaken identity," the company said in a statement on Twitter.
"The social media post by the employee is against Infosys' code of conduct and its commitment to responsible social sharing. Infosys has a zero tolerance policy towards such acts and has accordingly, terminated the services of the employee," the statement added.

Earlier this month, the IT firm had vacated one of its buildings in Bengaluru after an employee was suspected to be infected.

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News Network
February 18,2020

Bengaluru, Feb 18: Deputy chief minister Laxman Savadi was elected to the legislative council on Monday and although it was a done deal that he would win, a vote from across the aisle spiced up the election.

Counting was conducted soon after ballots were cast and Savadi polled 113 of the 120 votes cast, including the vote of disgruntled JD(S) legislator GT Devegowda. Seven votes were declared invalid. Members of the two opposition parties — Congress and JD(S) — abstained from voting.

The election was necessitated following the resignation of Rizwan Arshad of the Congress. Rizwan resigned after he was elected to the legislative assembly from the Shivajinagar constituency in the assembly bypolls held for 15 seats in December last year.

BR Anil Kumar, who was initially promised the support of both Congress and JD(S) was supposed to contest as an independent candidate. However, as both parties refused to support him at the last minute, he withdrew, paving the way for Savadi’s victory.

The BJP has 117 members in the 225-member assembly, but N Mahesh of the BSP and two independents, H Nagesh and Sharath Bachchegowda, besides GT Devegowda also voted, taking the total electorate to 120 (including the speaker). BJP’s SA Ramadas did not turn up because of health reasons.

“I would like to thank all those who were responsible for my victory. Special thanks to leaders of my party and chief minister BS Yediyurappa, who gave me the opportunity to be the BJP candidate,” said Savadi.

Winning this council election was crucial for Savadi to retain his ministry as he was not an elected member of either of the houses. Rules mandate that a non-member must get elected either to the assembly or council within six months after taking over as minister. February 20 was the deadline for Savadi, who had lost 2018 assembly polls from Athani, to get elected.

Officials in the assembly secretariat said seven votes were invalid because voters had wrongly marked their choices on ballot paper. According to norms, a voter has to mark numerical one, two and three against the names of the candidates in order of preference. Marking only numerical one is allowed. However, six ballots had a tick mark, while a voter had registered a cross mark. Since it was a secret ballot, it was not known who the MLAs were whose votes were invalid.

“The ballot papers bear serial numbers and they are randomly distributed. It is virtually impossible to say who a voter cast his or her vote for,” said assembly secretary MK Vishalakashi, the retuning officer for the bypoll.

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Agencies
July 25,2020

New Delhi, Jul 25: Nearly a year after Cafe Coffee Day founder V.G. Siddhartha's death, the probe committee appointed by the Board of Coffee Day Enterprises Ltd (CDEL) has given a virtual clean chit to private equity investors and the Income Tax Department who were named in his last letter.
The investigation report noted that Siddhartha may have felt "aversive behavioural stimulus" due to persistent reminders from the PE investors and other lenders.

"However, such reminders and follow-ups by the PE investors and lenders are not something which are beyond normal industry practices and we believe that PE investors were acting as per accepted legal and business norms," said that report.

It further said that the investigators were not provided with any documentary evidence to show any "advertent or inadvertent harassment" from the Income Tax Department.

It however, said that the financial records suggest a serious liquidity crunch which may have arisen due to the attachment of Mindtree shares by the IT Department.

Further, the probe revealed that MACEL, a private firm of Siddhartha, owes Rs 2,693 crore to Coffee Day Enterprises, which the report says, "needs to be addressed".

The Cafe Coffee Day founder's body was fished out of the Netravathi river in Karnataka by a group of fishermen on July 31 last year, a day after he went missing.

His last note raised several questions about the role of investors, and tax officials.

He had written: "Tremendous pressure from other lenders lead to me succumbing to the situation. There was a lot of harassment from the previous DG Income Tax in the form of attaching our shares on two separate occasions to block our Mindtree deal and then taking possession of our Coffee Day shares, although the revised returns have been filed by us. This was very unfair and has led to a serious liquidity crunch."

The massive shock to the industry and the country also led the government to assure that tax officials would not harass businessmen and the situation would improve.

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