Telecom Tariffs Set to Go Down as Trai Cuts Interconnection Charges

Advertisement
By Press Trust of India | Updated: 23 February 2015 19:18 IST

In a bid to boost fixed line phone connections in the country, telecom regulator Trai Monday removed charges that a landline service provider has to pay to the other service providers for transmitting its customers' phone calls - a move that is likely to lead to lower tariffs.

Now, calls made from landline-to-landline or landline-to-mobiles will not include the interconnection charge, which was 20 paise.

Advertisement

Trai has also reduced network interconnection usage charges (IUC) on calls made from mobile phones by about 30 percent to 14 paise per call from 20 paise earlier.

"To promote investment in, and adoption of, wireline networks, so that they may become an effective vehicle for the delivery of high-speed Internet in the country, the Authority has decided to prescribe FTC (fixed termination) as well as MTC (mobile termination charge) for wireline to wireless calls as zero," Trai said in the new IUC rule issued today.

Advertisement

Telecom subscribers can't communicate with each other or connect with other networks unless necessary interconnection arrangements are in place.

A telecom company is required to pay interconnection charges when its subscriber make call to subscriber of other network. The charge gets added up in final price that a subscriber has to pay.

Advertisement

"The Authority is of the opinion that in case the MTC is set to zero for wireline to wireless calls, wireline access providers would be able to provide innovative tariff packages (e.g. flat rental plans with unlimited or a significantly large number of outgoing calls)," Trai said.

Similarly, in case the FTC for calls originating from wireless networks and terminating on wireline networks is set to zero, this "would propel wireless access providers to offer cheaper tariffs for wireless-to-wireline calls," Telecom Regulatory Authority of India said.

Advertisement

Landline connections in the country have been declining since the time mobile incoming calls were made free. While mobile subscriber base at the end of 2014 reached all time high at 94.39 crore, landline connections are only 2.7 crore.

State-run telecom companies BSNL dominates landline phone connections with 62.71 percent market share followed by MTNL 13.04 percent, Bharti Airtel 12.55 percent, Tata Teleservices 5.98 percent and Reliance Communications 4.39 percent.

Videocon's Quadrant, Vodafone and Sistema Shyam account for 1.2 percent market share. Landline connections of private players are mainly meant for providing broadband connections.

In mobile segment, Bharti Airtel leads market with 23.01 percent market share followed by Vodafone 18.93 percent, Idea Cellular 15.95 percent, RCom 11.26 percent, BSNL 8.62 percent, Aircel 8.33 percent, Tata Teleservices 7.01 and Uninor 4.62 percent.

Sistema Shyam, Videocon Telecom and MTNL account for about 2 percent mobile service market share.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: India, Tariffs, Telecom, Trai
Advertisement

Related Stories

Popular Mobile Brands
  1. Vivo S2 to Launch in India Soon, Design Officially Teased
  2. Here's What the Apple Watch Series 12, Watch Ultra 4 Might Offer
  3. BitMart to Wind Down Exchange, End Trading by August 26
  4. Rockstar Games Details GTA 6 Digital Download Code Region Restrictions
  5. Redmi Note 17 India Launch Teased; Price in India Leaked
  6. God of War Laufey Launches Next Year, New God of War With Kratos Confirmed
  7. Here's When the Honor Robot Phone Will Launch: See Expected Specifications
  8. Adidas Hyperboost Edge Launched as Brand's Lightweight Super-Trainer
  9. Xiaomi, Redmi Smartphone Prices Reportedly Increased in India
  10. Vivo X300 E With a 7,200mAh Battery Arrives at This Price
  1. Redmi Note 17 India Launch Teased; Price in India Leaked Online
  2. Blockaid Reports $450,000 Exploit as Garden Finance Disables App
  3. Oppo A7 Pro Max Officially Teased With Massive 10,000mAh Battery Ahead of Launch
  4. Rockstar Games Details GTA 6 Digital Download Code Region Restrictions
  5. Vivo S2 India Launch Confirmed as Official Teaser Goes Live: Expected Specifications, Features
  6. Adidas Hyperboost Edge Launched in India With Hyperboost Pro Foam, Lighttraxion Outsole Technology
  7. BitMart Exchange to Cease Trading by August 26, Full Shutdown Set for 2027
  8. Apple Watch Series 12, Watch Ultra 4 Might Sport a Similar Design as Last Year; Watch SE Refresh Unlikely in 2026
  9. Xiaomi 17T, Redmi Note 15 5G, Redmi 15 Series Price in India Reportedly Hiked: Check Revised Prices
  10. Vi Launches Rs. 200 Prepaid Plan With 20 OTT Apps, Live TV, Unlimited 5G Data, and More
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.