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
June 5,2020

Madikeri, Jun 5: Karnataka Minister for Revenue R Ashok said a Rs 10 crore grant would be released shortly for construction of a permanent building for 'Relief Centre' in Kodagu district which is vulnerable to floods because of its hilly landscape.

According to an official release here on Friday, the Minister symbolically handed over the newly built houses to flood victims in Jambur in Somwarpet on Thursday evening.

He said that whenever the 'Relief Centre' is vacant it will be used for government meetings.

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News Network
April 6,2020

Mangaluru, Apr 6: City Police Commissioner Dr P S Harsha has directed coastal security personnel to block the boat service near Talapady after reports of Kasarogod people using boats to cross over to Dakshina Kannada via Talapady river emerged, Dakshina Kannada District in-charge Minister Kota Srinivas Poojary said here on Monday.

Following the rise in Coronavirus cases in the neighbouring Kasargod district, District Commissioner Sindhu Roopesh ordered closure of borders with Kerala and totally suspended vehicular movement, including for medical emergencies.

However, now the people living in Talapady and surrounding areas allege that the government has failed to monitor people using boats to cross over to Dakshina Kannada via Talapady river.

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News Network
July 4,2020

Bengaluru, Jul 4: Amid the rising COVID-19 cases in the state, the Karnataka COVID-19 Task Force has decided to set up booth-level committees across the state including 8,800 here for effective monitoring and surveillance.

The task force also released detailed guidelines for home isolation for asymptomatic cases including 17 days ''home isolation'' for patients below 50 years of age. It also warned of legal action against those health workers for disrespect to the bodies.

Briefing reporters after the meeting on Friday, Medical Education Minister Dr K Sudhakar said the local management will be strengthened for effective monitoring and surveillance of COVID-19 cases. "There will be booth-level task force committees throughout the state right from the village to Bengaluru.

These task force committees will act at the ultra local level. The task force will act as a structural and functional unit of COVID-19 dealing with monitoring, surveillance, checking of all the ILI cases, ambulances and hospitals," he added.

He also said the committees will comprise one member each from the Health department, police department, municipalities or Panchayat, volunteers, valveman. The committee will have five to six members.

The principal secretary in the Village Development and Panchayat Raj department L K Ateeq has been appointed as the nodal officer to manage the task force in the rural areas whereas in the urban areas, the Urban Development secretary, the municipal administration directors and the municipal commissioner will form the local task force.

"In Bengaluru alone 8,800 teams will be formed, which will be coterminous with the 8,800 booths in the city. They will provide the real-time data. They will be imparted training," the minister added. Noting that there were about 8,800 electoral booths in Bengaluru city and each booth will have a task force committee, he said a nodal officer has been appointed to oversee this.

The state level task force also came out with a slew of conditions. As far as home isolation is concerned, it would apply for patients who are below 50 years and have no symptoms of any other disease, and their homes should have a toilet and have an attendant.

He also said home isolation duration has been increased from 14 to 17 days. "People should not get fever in the next three days after completing 14 days, else they will be quarantined for another seven days. If they don''t get fever then they will be freed to perform their personal activities," Sudhakar said.

Those who are above 50 years and have comorbidities, will be treated at the COVID care centres only and they will be under medical supervision and be subjected to regular tests. The state is also making arrangements for telecommunication for those who are asymptomatic but wish to speak to a doctor.

It was also decided to have at least two ambulances in each of the 198 wards of Bengaluru. The minister said the additional commissioner of police (traffic) will be the nodal officer to coordinate the movement of ambulances. The task force has also appointed a nodal officer to manage the hospitals based on the availability of beds and ventilators. The officer will provide real time information about beds.

"We want to make sure that no one has to run from one hospital to another," Sudhakar said. On the cremation of the bodies, Sudhakar said guidelines have been issued on how to handle bodies at mortuaries, taking them in the ambulances, human treatment to the deceased while performing the last rites and fumigation of the bed. "Legal action will be taken against those who treat bodies in an inhuman way," Sudhakar said.

The state-level task force has also decided to arrange for test reports within 24 hours. It has also been decided to increase the testing capacity from the existing 15,000 a day to 25,000. In view of the spurt in COVID-19 cases, the task force also recommended antigen tests in crowded areas to check whether there was community spread.

To a question on closing down the border, the minister said there is no question of lockdown. "We cannot hide from this disease. It is not a solution. We have to live with it now, yet maintain a distance from it," he added. Sudhakar, who is a doctor himself, said COVID-19 is not as deadly a virus as those he had seen in the past and asked people not to be scared of it.

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