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 27,2020

Belgaum, Mar 26: The police on Thursday thrashed people who had gone to offer prayers at a mosque despite the nationwide lockdown in force.
In a video, the police personnel can be seen thrashing the people with batons while they were leaving after offering prayers at a local mosque here.
In another incident in Rajasthan's Pratapgarh, the police made few youngsters hop along a road and even gave the 'murga,' punishment to a few of them for violating the restrictions.
Similarly in Uttar Pradesh's Budaun, the police made people hop along a road with their bags strapped on their backs as a punishment. The people were possibly going to their native places.
In the video of the Budaun incident, a few men can be seen being made to hop along the road with a stick-wielding policeman keeping a watch.
SSP Budaun told ANI that an investigation is being conducted into the incident and expressed an apology for the police's behaviour.
Prime Minister Narendra Modi had announced a 21-day countrywide lockdown to check the spread of coronavirus, saying that "social distancing" is the only option to deal with the highly contagious disease.

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News Network
March 11,2020

Bengaluru, Mar 11: The move by rebel ruling Congress MLAs in Madhya Pradesh to trigger the crisis for the party's government in the state appears to have been in the making for at least close to a month as Karnataka BJP leaders were sounded about hosting them in Bengaluru in advance, sources said.

They also indicated that the 19 rebel MLAs would stay in the city for at least two weeks till an alternative government takes charge in Madhya Pradesh.

A senior Karnataka BJP leader, in charge of the Madhya Pradesh legislators' stay in Bengaluru, received a communication from the party's central leaders about the move nearly 15-20 days ago, the sources involved in the development said on condition of anonymity on Tuesday.

The leader had even gone to New Delhi in the third week of February to meet BJP's central leaders in this regard, they said.

In a massive setback for the Congress, its prominent youth leader Jyotiradtya Scindia quit the party and in a coordinated rebellion on Tuesday 21 MLAs loyal to him resigned in Madhya Pradesh, pushing the 15-month-old Kamal Nath government to the brink of collapse.

As many as 19 Madhya Pradesh MLAs, including six ministers, said to be loyalists of Mr Scindia who appeared set to join BJP, are camping at a resort in Bengaluru. Two of them are women, the sources said.

The MLAs on Tuesday sent their resignation letters via e-mail to Raj Bhavan in Bhopal from Bengaluru.

According to the sources, eight legislators, including an independent, have been staying in the city for about a week now. Of them two - one from Congress and the other an independent MLA - had gone back.

The six were joined by 13 legislators, who landed in the city by a chartered flight on Monday, and all of them are put up in a villa.

The senior Karnataka BJP leader, also an MLA, is looking after their stay and related arrangements on the directions of the party high command, the sources said. Their stay here may be for a couple of weeks.

"There will be a no-confidence motion, and then there will be a trust vote of the new alternative government that will be formed. So they may have to stay here for some time. They may be moved out of their current location," they said.

The Madhya Pradesh legislature session is expected to begin on March 16.

The sources also said the six legislators staying in the city since last week were shifted a couple of times within the city.

Congress in Madhya Pradesh, under the leadership of Kamal Nath, had come to power in December 2018 by ousting the BJP by a narrow margin.

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News Network
April 4,2020

New Delhi, Apr 4: The Supreme Court on Friday urged Karnataka and Kerala to amicably resolve their issues concerning a border blockade that has choked the free flow of vehicles carrying essential items and patients in the midst of the COVID-19 outbreak.

Karnataka, which imposed the blockade, justified that its border was sealed to “combat the spread of the pandemic by preventing the movement of people from the bordering districts of Kerala to Karnataka”.

The State had moved the Supreme Court, challenging a Kerala High Court order on April 1 to open the border. Kerala has countered that patients from the State cannot be denied access to health care. Besides, the blockade has severely affected the supply of essential items, from medicines to food, to Kerala.

On Friday, a Supreme Court Bench of Justices L. Nageswara Rao and Deepak Gupta urged the States to not confront each other in the midst of an unprecedented public health crisis. Instead, it asked the Chief Secretaries of both States to sit with the Union Health Secretary and iron out a solution. Meanwhile, the apex court urged Kerala not to take any precipitative action based on the High Court order.

The court issued notice to Kerala on the appeal filed by Karnataka, represented by advocate Shubhranshu Padhi. It listed the case for further hearing on April 7.

Karnataka, in its appeal against the High Court order, said the blockade was put in place in the interest of public health. The situation regarding Coronavirus was “really dire”, it said. It warned that opening the blockade would cause a law and order issue as its local population wanted the border to remain sealed.

Karnataka argued that Kerala was the “worst-affected” State in the country with nearly 194 coronavirus cases. In this, Kasaragod, adjoining Karnataka, was the “worst affected” district of Kerala with over a 100 positive cases.

MP’s plea

The court also separately considered a writ petition by Kasaragod MP Rajmohan Unnithan for an order to forthwith open the State border.

The parliamentarian, represented by advocates Haris Beeran and Pallavi Pratap, urged the court to issue an ex-parte stay on the operation of the blockade imposed by Karnataka with its border States.

Mr. Unnithan said Karnataka’s blockade was “ill-planned and dangerous” and had led to loss of lives. Two patients from Kerala, in need of urgent medical care, died after their ambulances were denied entry at the border by the Karnataka authorities. 

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