Date:01/01/2009 URL: http://www.thehindu.com/2009/01/01/stories/2009010155091300.htm

National

Mobile tariffs may drop further

Sandeep Joshi

NEW DELHI: With the Telecom Regulatory Authority of India (TRAI) starting the process of rationalising charges shared by telecom operators on Wednesday, there could be more good news in 2009 for mobile phone users on the tariff front.

Recently, Communications and Information Technology Minister A. Raja too had hinted at a further reduction in mobile phone tariffs when he asked the Department of Telecommunication to review interconnection charges.

While issuing a consultation paper on “Review of Interconnection Usage Charge,” TRAI has asked all stakeholders for their views on the various charges payable by the operators among them for carriage and termination of domestic and international calls. It will also consider new telecom service such as 3G, WiMAX and VoIP and their impact on the industry while reviewing the IUC regime. It has asked all stakeholders to submit their views by January 31, 2009.

A telecom operator pays IUC to other operators for using their networks either for origination, termination or carriage of a call.

Underlining the need for reviewing the IUC regime, TRAI said: “A number of factors had gone into fixing IUC charges that are currently prevailing. It would be now necessary to consider the effects on IUC of increasing competition, growth of subscribers, reduction in tariff, total traffic and its dispersion and also the cost of providing services. A number of policy and regulatory changes have also happened since the last review of IUC that could have a bearing on one or more of these charges.”

At present, both the mobile termination charge and fixed termination charge are 30 paise. Carriage charge has a ceiling of 65 paise, origination charge is under forbearance, while transit charge is lower than 20 paise, subject to mutual negotiations.

TRAI last reviewed the IUC regime in 2003.