TRAI Increases International Call Termination Charges To 35-60 Paise Per Minute

In order to help telecom operators, the telecom regulator TRAI has come up with new regulations for international calls. TRAI has increased the rates of international termination charges (ITC) to 35- 65 paise per minute as against 30 paise earlier. The move is likely to benefit all telecom players.

"The international termination charges (ITC) will be brought under forbearance, meaning that telecom operators will have the flexibility to decide the tariffs. The regulator said that the operators should hike the price within the prescribed range of 35 paise per minute to 65 paise per minute," Telecom Regulatory Authority of India (TRAI) said in a notification.

For the unaware, international termination means the money that international long distance operator (ILDO) has to pay to telecom companies in India if the call terminates on the network. However, it is quite interesting that the new rates are still less than in other countries like Singapore is charging Rs. 1.7 per minute, while the US is charging Rs. 1.1 per minute.

Furthermore, the regulator said that this is the first-time ITC has been prescribed by them in the country. The TRAI intimated that it will closely monitor the new rates, patterns, and trends.

Meanwhile, the industry body Cellular Operators Association of India (COAI) believes that this move will help ILDO to fix the new charges. The firm also said that they had submitted the letter to TRAI to help all private and state-run telecom operators.

"With this revision, ILDOs are expected to adjust their charges accordingly and regain parity with international countries. This is certainly a step in the right direction and will ensure the country does not lose precious FOREX in paying higher international termination rates to other countries," COAI said. Adding to that, "The Indian telecom sector needs more such measures to ensure robust telecom infrastructure and financial health."